INTERNATIONAL 

i| 

TRADE  CONFERENCE 


1919 


INDEX. 

Page 

Foreword  by  MR.  ALFRED  C.  BEDFORD 9 

Chairman  of  the  Executive  Committee. 

Purpose  of  the  Conference 11 

Personnel  of  Executive  Committee 12 

Arrival  of  Missions  at  New  York 13 

Preliminary  Meetings  in  New  York 13 

Personnel  of  Foreign  Missions — 

Belgium  14 

France 14 

Great  Britain  15 

Italy  16 

Addresses  at  Banquet  at  Hotel  Traymore,  Saturday  Evening, 
October  18 — 

MR.  HOMER  L.  FERGUSON  16 

President  of  the  Chamber  of  Commerce  of  the  United  States 

MR.  ALFRED  C.  BEDFORD 19 

Chairman  of  the  Executive  Committee 

M.  FLORIMOND  HANKAR  24 

Chairman  of  the  Belgian  Mission 

M .  EUGENE  SCHNEIDER 26 

Chairman  of  the  French  Mission 

MR.  MARSHALL  STEVENS,  M.  P 29 

Member  of  the  British  Mission 

M.  FERDINANDO  QUARTIERI 31 

Chairman  of  the  Italian  Mission 

MR.  EDWARD  A.  FILENE 33 

SIR  ARTHUR  SHIRLEY  BENN 37 

Chairman  of  the  British  Mission 

General  Meeting  of  All  Committees  in  Belvedere  Room,  Hotel 
Traymore,  Monday,  October  20,  at  10.00  A.  M 38 

First  General  Session  of  Conference  at  Young's  Pier,  Wednes- 
day, October  22,  at  8.15  P.  M. 


478238 


Opening  remarks  by  MR.  ALFRED  C.  BEDFORD 55 

Remarks  by  MR.  HOMER  L.  FERGUSON 64 

Address  by  HON.  BRECKINRIDGE  LONG 67 

Address  by  M.  FLORIMOND  HANKAR 72 

Address  by  M.  EUGENE  SCHNEIDER 77 

Address  by  SIR  ARTHUR  SHIRLEY  BENN 81 

Address  by  M.  FERDINANDO  QUARTIERI 83 

Second  Session,  Thursday,  October  23,  at  10.00  A.  M 89 

Remarks  by  Mr.  JOHN  H.  FAHEY 89 

Address  by  HON.  WILLIAM  C.  REDFIELD 92 

Address  by  M.  EUGENE  SCHNEIDER 103 

Third  Session,  Thursday,  October  23,  at  2.00  P.  M 122 

Address  by  M.  CANON-LEGRAND 123 

Address  by  SIR  ARTHUR  SHIRLEY  BENN 133 

Address  by  PROFESSOR  BERNARDO  ATTOLICO 142 

Fourth  Session,  Thursday,  October  23,  at  8.15  P.  M 159 

Remarks  by  Mr.  HOMER  L.  FERGUSON 159 

Address  by  M.  EUGENE  SCHNEIDER 160 

Address  by  MR.  DWIGHT  W.  MORROW 181 

Fifth  Session,  Friday,  October  24,  at  10.00  A.  M 197 

Remarks  by  MR.  R.  GOODWYN  RHETT 197 

Address  by  MR.  NORMAN  H.  DAVIS 201 

Address  by  M.  ALBERT  E.  JANSSEN 209 

Address  by  M.  LE  BARON  DU  MARAIS 221 

Sixth  Session,  Friday,  October  24,  at  2.15  P.  M 234 

Address  by  SIR  JAMES  HOPE  SIMPSON 234 

Address  by  COMMANDER  DOMENICO  GIDONI 249 

Address  by  MR.  F.  O.  WATTS 259 

Seventh  Session,  Friday,  October  24,  at  8.15  P.  M 273 

Address  by  MR.  ALFRED  C.  BEDFORD 273 

Address  by  HON.  WILLIAM  P.  G.  HARDING 274 

Address  by  HON.  MYRON  T.  HERRICK 284 

Personnel  of  Program  Committee.... 290 

Committees  on  Credit  and  Finance — 

Personnel  of  1..  292 

Reports  of  300 

Committees  on  Chemicals — 

Personnel  of 306 

Reports  of  311-318 


Committees  on  Coal — 

Personnel   of  319 

Reports  of  -  320-332 

Committees  on  Foodstuffs — 

Personnel   of  

Reports  of  335-348 

Committees  on  Metals — 

Personnel   of  348 

Reports  of  350-359 

Committees  on  Petroleum — 

Personnel  of  360 

Reports  of  361-378 

Committees  on  Reconstruction  Supplies — 

Personnel   of  378 

Reports  of  380-420 

Committees  on  Shipping — 

Personnel  of  420 

Reports  of  422-438 

Committees  on  Textiles 

Personnel   of   '. 438 

Reports  of  440-458 

Committees  on  Permanent  Organization — 

Personnel   of  459 

Reports  of  460-477 

Resolutions  500 

Closing  Remarks  by  the  Chairman,  MR.  ALFRED  C.  BEDFORD 506 

The  Tour  515 

Personnel  of  General  Committee 517 

Officers   and  Directors  of  the  Chamber  of  Commerce  of  the 
United   States  524 

Administrative   Organization    of   the    Chamber   of   Commerce 
of  the  United  States  ...  ...  526 


FOREWORD. 


TO  advance  in  detail  a  dogmatic  prediction  as  to  the 
practical  results  of  the  International  Trade  Confer- 
ence so  shortly  after  its  adjournment,  and  until  the 
great  mass  of  information  and  proposals  have  been  sifted 
and  clarified,  is  a  responsibility  I  shall  not  undertake. 

Nevertheless,  I  have 
and  always  have  had 
well  defined  views  up- 
on the  lasting  value  of 
this  Conference  of  rep- 
resentatives of  the  five 
nations  whose  joint 
participation  in  the 
war  so  strikingly  il- 
lustrated the  effective- 
ness of  unity  of  pur- 
pose and  action.  As 
our  generals  and  our 
armies  met  upon  the 
fields  of  France,  Flan- 
ders and  Italy,  to  pre- 
vent world  destruc- 
tion, so  was  this  meet- 
ing of  the  industrial, 
financial  and  economic 
leaders  of  the  Allied 
countries  and  the  United  States  for  a  single  purpose — the 
restoration  of  the  world's  commerce  to  a  normal  basis. 
Out  of  multiclicity  of  council  comes  wisdom,  and  no  one 
who  attended  and  participated  in  these  councils  could  be 
but  struck  with  the  intense  earnestness,,  the  intelligence, 
the  disposition  for  friendly  fair  play  and  the  will  to  suc- 
ceed which  animated  our  distinguished  guests  from  over- 


ALFRED  C.  BEDFORD 


10          THE  INTERNATIONAL  TRADE  CONFERENCE 

seas  and  the  American  business  men  who  joined  with 
them. 

One  thing  may  be  certain.  The  Conference,  in  concep- 
tion, in  execution  and  in  probable  results,  was  the  most 
important  international  trade  meeting  in  history.  It 
serves  as  a  corollary  to  the  Peace  Conference  and  was  a 
natural  and  inevitable  outcome  of  the  situation  in  which 
the  world  was  left  by  the  devastating  war  which  rocked 
human  institutions  to  their  foundations. 

In  this  brief  foreword  I  feel  called  upon  to  pay  special 
tribute  to  the  patriotism,  self-sacrifice  and  intelligence 
of  our  foreign  guests  and  our  own  countrymen  and  to 
the  committeemen,  officers  and  executives  of  the  Chamber 
of  Commerce  of  the  United  States  who  formed  effective 
and  coordinating  parts  of  this  newly  erected  piece  of 
international  trade  machinery,  the  permanent  completion 
and  effective  operation  of  which  is  the  earnest  desire  and 
fixed  determination  of  each  of  us  who  participate  in  its 
construction. 

ALFRED  C.  BEDFORD, 

Chairman,  Executive  Committee,  International  Trade 
Conference;  Vice  President,  Chamber  of  Com- 
merce of  the  United  States;  Chairman,  Board  of 
Directors,  Standard  Oil  Co. 

NEW  YORK,  October  31,  1919. 


THE  INTERNATIONAL  TRADE  CONFERENCE 


11 


Purposes  of  the  Conference. 

The  International  Trade  Conference  was  called  for  the 
definite  purpose  of  ascertaining:  (1)  the  material  and 
economic  needs  of  the  four  principal  allied  nations — 
Belgium,  France,  Great  Britain,  Italy — both  immediate 
and  continuing,  and  (2)  to  what  extent  the  United  States 
could  and  should  supply  those  needs,  and  how. 

The  idea  of  the  Conference  was  germinated  when  rep- 
resentatives of  the  United  States  Chamber  of  Commerce 
attended  an  informal  meeting  of  the  Permanent  Organ- 
ization Committee  of  the  International  Congress  of 
Chambers  of  Commerce  held  in  Paris  in  the  spring  of 
1919.  Mr.  Edward  A.  Filene,  of  Boston,  Mass.,  a  director 
of  the  United  States  Chamber  of  Commerce,  and  Mr. 
Edward  G.  Miner,,  of  Rochester,  N.  Y.,  later  joined  by 
Mr.  Thomas  W.  Lamont  and  Mr.  A.  C.  Bedford,  of  New 
York  (the  latter  a  vice  president  of  the  United  States 
Chamber  of  Commerce),  and  Mr.  Elliot  H.  Goodwin, 

General  Secretary,  laid 
the  plan  before  the 
proper  persons  and  or- 
ganizations in  the  four 
countries  named,  and 
as  a  result  it  was 
determined  that  the 
Chamber  of  Commerce 
of  the  United  States 
should  invite  repre- 
sentatives from  each 
of  those  countries  to 
come  to  the  United 
States  and  discuss 
these  problems  with 
the  business  men  of 
America.  In  each  coun- 
try, as  well  as  Amer- 
ica, care  was  taken  to 
obtain  the  acceptance 
of  those  men  who 


ELLIOT    H.    GOODWIN. 


12         THE  INTERNATIONAL  TRADE  CONFERENCE 

could  speak  with  authority  upon  the  separate  vital  needs 
of  Credit  and  Finance,  Chemicals,  Coal,  Petroleum, 
Metals,  Foodstuffs,  Reconstruction  Supplies,  and  Tex- 
tiles. Anticipating  the  inevitable  demand  for  continuity 
of  activity,,  these  were  supplemented  by  a  Joint  Commit- 
tee on  Permanent  Organization. 

The  openhanded  invitation  of  America,  the  country 
having  the  resources  of  raw  material,  foodstuffs,  manu- 
factures and  capital  upon  which  heavy  drafts  could  be 
made,  was  accepted  in  the  spirit  offered,  with  the  result 
that  some  sixty  picked  European  men  of  affairs  came  to 
the  United  States  and  sat  in  continuous  conference  with 
a  still  larger  number  of  leading  American  business  men 
in  an  endeavor  to  arrive  at  a  solution  of  these  grave  and 
pressing  problems. 

The  first  days  were  given  over  to  group  meetings  of 
the  twenty  committees  (ten  from  each  of  the  five  coun- 
tries involved),  each  dealing  with  the  ten  major  topics, 
and  finally  evolving  into  the  general  sessions  participated 
in  by  the  business  men  from  all  parts  of  the  United 
States,  described  by  Mr.  F.  0.  Watts  of  St.  Louis,  Mo., 
former  president  of  the  American  Bankers'  Association, 
as  "the  most  notable  gathering  of  business  men  held  in 
America,"  and  where  the  result  of  the  intensive  labors  of 
the  committees  were  set  forth. 


Executive  Committee. 

ALFRED  C.  BEDFORD,  Chairman,  New  York,  Standard  Oil  Co. 

JOHN  H.  FAHEY,  Vice  Chairman,  Boston,  St.  Johns  River  Ship- 
building Co. 

ANDREW  H.  PHELPS,  Eastern  District  Secretary,  Chamber  of  Com- 
merce of  the  United  States,  New  York. 

DELOS  W.  COOKE,  New  York,  Cunard  Steamship  Co. 

JOSEPH  H.  DEFREES,  Chicago,  Defrees,  Buckingham  &  Eaton. 

JAMES  A.  FARRELL,  New  York,  Chairman,  National  Foreign  Trade 
Council. 

HOMER  L.  FERGUSON,  Newport  News,  Newport  News  Shipbuilding 
and  Dry  Dock  Co. 

EDWARD  A.  FILENE,  Boston,  William  Filene's  Sons  Co. 

THOMAS  W.  LAMONT,  New  York,  J.  P.  Morgan  &  Co. 


THE  INTERNATIONAL  TRADE  CONFERENCE          13 

OWEN  D.  YOUNG,  New  York,  General  Electric  Co. 

IVY  L.  LEE,  New  York. 

ALFRED  E.  MARLING,  New  York,  President,  Chamber  of  Commerce 
of  the  State  of  New  York. 

EDWARD  G.  MINER,  Rochester,  The  Pfaulder  Co. 

WILLIAM  FELLOWES  MORGAN,  New  York,  President,  Merchants' 
Association  of  New  York. 

LEWIS  E.  PIERSON,  New  York,  Irving  Natoinal  Bank. 

R.  GOODWYN  RHETT,  Charleston,  S.  C.,  Peoples  National  Bank. 

GEORGE  ED.  SMITH,  New  York,  President,  American  Manufac- 
turers' Export  Association. 

ERNEST  T.  TRIGG,  Philadelphia,  John  Lucas  &  Co. 

HARRY  A.  WHEELER,  Chicago,  Union  Trust  Co. 

THEODORE  F.  WHITMARSH,  New  York,  Francis  H.  Leggett  &  Co. 

Arrival  at  New  York. 

The  Commissioners  from  overseas  arrived  at  New 
York  on  the  United  States  Transport  Northern  Pacific, 
Sunday  morning,  October  12,  accompanied  by  Mr.  Ed- 
ward A.  Filene,  director  of  the  United  States  Chamber 
of  Commerce,  and  Mr.  Ben.  H.  Lambe  of  the  Wash- 
ington office  of  the  Chamber.  They  were  met  by  Mr. 
Louis  E.  Pierson,  chairman,  and  members  of  the  Recep- 
tion Committee,  Mr.  A.  C.  Bedford,  chairman  of  the 
Executive  Committee,  and  others,  and  driven  to  the 
Waldorf-Astoria  Hotel,,  to  remain  until  Friday,  Octo- 
ber 17. 

Preliminary  Meetings  in  New  York. 

The  interim  between  arrival  in  New  York  and  depar- 
ture for  Atlantic  City  was  employed  most  effectively. 
Arrangements  had  been  made  for  a  series  of  "rotary" 
meetings  between  each  of  the  foreign  commissions  sit- 
ting en  bloc,  and  representatives  of  each  of  the  ten  topi- 
cal committees  from  the  American  side.  For  three  days 
these  intensive  meetings  were  held,  serving  as  a  dress 
rehearsal  for  the  formal  meetings  at  Atlantic  City, 
clearing  away  a  great  quantity  of  surplus  matter,  allow- 
ing the  American  Committee  to  become  personally  ac- 
quainted with  the  Europeans  and  permitting  the  Atlantic 


14          THE  INTERNATIONAL  TRADE  CONFERENCE 

City  Conferences  to  get  under  way  with  a  minimum  loss 
of  time. 

No  attempt  at  formal  entertainment  was  made,  that 
being  reserved  for  the  Merchants'  Association  and  Cham- 
ber of  Commerce  of  New  York,  upon  the  return  of  the 
commissions  from  their  tour  of  the  industrial  centers  of 
the  country. 

On  Friday  morning  a  special  train  took  the  commis- 
sioners, many  New  York  committeemen  and  officials  of 
the  United  States  Chamber  of  Commerce  to  Atlantic 
City,  where,  aside  from  some  few  informal  meetings,  the 
guests  were  left  free  to  enjoy  themselves  until  the  serious 
labors  of  the  Conference  formally  began. 


Personnel  of  Foreign  Commissions. 
BELGIUM. 

M.  FLORIMOND  HANKAR,  Chairman;  Director,  National  Bank  of 
Belgium;  Honorary  Director  General,  Savings  Bank  of  Bel- 
gium. 

M.  CANON-LEGRAND,  President,  Chamber  of  Commerce,  Mons;  Con- 
struction Engineer;  Permanent  President,  International  Con- 
gress of  Chambers  of  Commerce. 

M.  ALBERT  NEVE,  Departmental  Director,  Ougree-Marihaye  Works, 
Liege. 

M.  ALBERT  E.  JANSSEN,  Director,  National  Bank  of  Belgium,  Pro- 
fessor University  of  Louvain. 

M.  ALEXANDRE  DE  GROOTE,  Vice-President,  Antwerp  Chamber  of 
Commerce. 

PROF.  PAUL  VAN  DEN  VEN,  University  of  Louvain,  Delegate  of 
Belgian  Minister  of  Finance  at  Paris  Conference. 

FRANCE. 

M.  EUGENE  SCHNEIDER,  Chairman  of  Mission,  Head  of  Creusot 
Steel  Works;  President  of  Iron  and  Steel  Institute  of  Great 
Britain;  former  Member  of  Chamber  of  Deputies. 

M.  TIRMAN,  Councillor  of  State;  Representative  of  French  Minis- 
try of  Commerce. 

M.  LE  BARON  DU  MARAIS,  Vice-Chairman  of  Mission;  Director  of 
Credit  Lyonnais. 

M.  ANDRE  HOMBERG,  Vice-President  of  the  Societe  Generale. 

M.  PELLERIN  DE  LA  TOUCHE,  President  of  French  Transport- 
Atlantic  Line;  President  of  Paris  Subways. 


THE  INTERNATIONAL  TRADE  CONFERENCE         15 

M.  WADDINGTON,  Textile  Manufacturer;  Vice-President  of  Syndi- 

cat  Normand  du  Tissage. 
M.  ROCHE,  Delegate  of  General  Syndicate  of  Chemical  Products; 

Director  of  the  firm  of  Poulene  Brothers. 
M.  JULIEN  POTIN,  Vice-President  of  Biscuit  Syndicate;  President 

of  Dry  Vegetable  Syndicate;  President  of  Potin  &  Company. 
M.   GODET,  former   President  of  the  Tribunal  of  the   Section  of 

Commerce  of  the  Seine;  ex-President  of  the  General  Associa- 
tion of  Textiles;  Member  of  Chamber  of  Commerce  of  Paris; 

Delegate  of  the  Confederation  Generate  de  Production. 
M.  LE  COMMANDANT  VARAIGNE,  head  of  French  Mission  associated 

with  the  American  Services  in  Paris. 

M.  FRANCOIS-PONCET,  Delegate  of  the  Steel  Committee  in  France. 
M.  PESSON-DIDION,  Mining  Engineer;   Delegate  of  the  Union  of 

Metallurgical  and  Mining  Industries;   Director  of  the  Societe 

Centrale  pour  1'Industries  Electrique. 
M.   DOLLEANS,   Professor   of  Political   Economy  at  University  of 

Dijon. 
M.  PARMENTIER,  Engineer;  Delegate  to  the  Ministers  of  Commerce 

and  Public  Works;  Assistant  to  M.  Pellerin  de  la  Touche. 
M.  LOIZEAU,  Engineer  of  the  Credit  Lyonnais;   Assistant  to   M. 

le  Baron  du  Marais. 
M.  COLLIN,  Engineer  at  Schneider  establishment;  Assistant  to  the 

President  of  the  Mission. 

M.  DE  FREMINVILLE,  Engineer  at  Schneider  establishment. 
M.   MAZOT,   General   Secretary  of  the  French   High  Commission; 

General  Secretary  of  the  Mission. 
M.  BOYER,  Director  of  American  Services  in  the  Bank  of  Paris; 

Assistant  General  Secretary. 
M.  PIERRE  LEHIDEUX,  Secretary. 

GREAT  BRITAIN. 

SIR  ARTHUR  SHIRLEY  BENN,  K.  B.  E.;  M.  P.;  Chairman,  London. 

SIR  JAMES  HOPE  SIMPSON,  Director  and  General  Manager,  Bank 
of  Liverpool. 

HON.  J.  G.  JENKINS,  Corbiston,  London;  Member  of  Finance,  Gen- 
eral Purposes  and  Merchants'  Committees,  London  Chamber  of 
Commerce;  V.  P.,  British  Producers'  Association;  former 
Premier,  South  Australia. 

MR.  MARSHALL  STEVENS,  M.  P.,  Manchester. 

BAILIE  JOHN  KING,  Chairman,  National  Light  Castings  Associa- 
tion, Glasgow. 

MR.  FRANK  MOORE,  Moore,  Eady  &  Murcott  Goode,  Ltd.,  Leicester. 

Secretaries: 
MR.   GEORGE  BERKES,  Assistant   Secretary,  Federation  of  British 


16          THE  INTERNATIONAL  TRADE  CONFERENCE 

Industries,  London;   Associate  Member,  Chartered  Institute  of 
Secretaries. 
LIEUT.  A.  S.  JARRATT,  Manchester. 

ITALY. 

COMMANDER  ENGINEER  FERDINANDO  QUARTIERI,  Chairman;  Presi- 
dent of  the  Italian  Corporation  for  Chemical  Industries  and 
other  Italian  companies. 

COMMANDER  PROF,  BERNARDO  ATTOLICO. 

COMMANDER  ENGINEER  DR.  LUIGI  LUIGGI,  Member  of  the  State 
Council  of  Public  Works;  Professor  at  the  University  of  Rome. 

COMMANDER  PROF.  VITTORIO  MENEGHELLI,  President,  Chamber  of 
Commerce  of  Venice. 

COMMANDER  GIORGIO  MYLIUS,  President  of  the  Italian  Master  Cot- 
ton Spinners'  and  Weavers'  Association. 

COMMANDER  DOMENICO  GIDONI,  Delegate  of  the  Italian  Treasury. 

COMMANDER  PIETRO  GIOVANNI  LAZZERINI,  Secretary  General. 

CHEVALIER  GIOVANNI  FUMMI,  Stock  Broker. 

COMMANDER  ERSILIO  BARONI,  President  of  the  Italian  Union  for 
the  Manufacture  of  Explosives. 

COMMANDER  DR.  AUGUSTO  JACCARINO,  Representative  of  the  Banco 
di  Napoli. 

CHEVALIER  GAETANO  BIASUTTI,  Representative  of  the  Banca  Ital- 
iana  di  Sconto. 

DR.  ILDO  MARCHISIO,  Representative  of  the  Banco  di  Roma. 

CHEVALIER  GUIDO  PEDRAZZINI,  Representative  of  the  Banca  Com- 
merciale  Italiana. 

CHEVALIER  FELICE  BAVA,  Representative  of  the  Credito  Italiano. 

MARQUIS  T.  THEODOLI. 

MR.  ANTONIO  AGRESTI. 

ENGINEER  MARIO  LUIGI  LUIGGI. 

ENGINEER  ARTURO  ANZANI. 


Address  by  Mr.  Homer  L.  Ferguson, 

President,   Chamber   of   Commerce   of   the    United   States,   at   the 

Banquet  Held  at  the  Hotel  Traymore,  Atlantic  City, 

Saturday  Evening,  October  18,  1919 

Gentlemen  of  the  European  Commercial  Missions:  It 
gives  me  great  pleasure  to  welcome  you  here  this  even- 
ing, and  to  welcome  you  to  the  International  Trade  Con- 
ference at  Atlantic  City,  in  the  name  of  the  Chamber  of 
Commerce  of  the  United  States. 

This  evening  you  are  our  personal  guests,  as  it  were, 


THE  INTERNATIONAL  TRADE  CONFERENCE 


17 


and  we  are  delighted  to  have  you  here  and  become  ac- 
quainted with  you.  We  are  prepared  to  like  you  and  we 
hope  you  will  like  us. 

During  the  week  we  shall  have  to  share  your  time  with 
the  business  men  of  the  United  States.  We  have  asked 
you  here  to  meet  business  men  from  all  over  this  coun- 
try, representing  every  line  of  industry,  and  you  are  here 
to  discuss  with  them  our  mutual  problems — not  only 
yours  of  Europe,  but  ours  of  America.  We  feel  sure 

that  the  great  task  of 
getting  the  world  on 
its  business  feet  again 
is  greater  than  the 
task  which  has  been 
met.  It  cannot  be  more 
difficult  than  the  tre- 
mendous struggle  we 
have  gone  through.  All 
of  the  forces  of  gov- 
ernments and  all  of 
the  credits  of  govern- 
ments were  used  to 
save  what  we  con- 
sidered the  civilized 
world,  and  to  do 
this  the  governments 
dropped  the  reins  of 
business.  These  gov- 
ernments have  gone 
back  to  attend  to  their 
normal  functions  and  it  remains  for  the  business  men 
of  the  world,  as  represented  by  your  missions  and  as 
represented  by  the  men  who  will  come  here  to  meet  you, 
to  help  get  this  old  world  of  ours  back  again  into  the 
normal  paths  of  production  and  of  peace. 

I  assure  you  that  we  hope  that  in  this  convention  at 
Atlantic  City,  in  our  relations  with  you  and  in  our  inter- 
course with  you,  to  typify,  in  some  small  degree,  the 
spirit  of  our  soldiers  who  fought  with  your  soldiers ;  and 


HOMER    L.    FERGUSON 


18          THE  INTERNATIONAL  TRADE  CONFERENCE 

who  showed  that,  even  though  their  language  might  not 
be  the  same  and  even  though  national  training  and  cir- 
cumstances might  not  be  the  same,  yet,  when  the  minds 
and  hearts  of  men  are  united  by  the  same  purpose,  they 
can  work  together  for  the  common  good  of  all  and  they 
can  win  in  that  way  the  triumphs  of  peace  as  well  as 
the  triumphs  of  war. 

It  gives  me  great  pleasure  personally  to  meet  with 
some  friends  whom  I  have  known  on  the  other  side  and 
whose  friends  I  have  known.  I  claim  to  be  Scotch  in 
origin,  Irish  by  adoption  and,  later,  American  by  pro- 
fession. When  a  young  man  in  the  navy,  I  came  very 
near  to  being  a  Frenchman.  By  the  merest  chance,  by 
the  toss  of  a  coin,  I  was  deprived  of  three  years  in  Paris. 
On  the  old  Lancaster,  another  man  and  I  sat  up  one  night 
to  toss  a  coin  to  see  which  of  us  was  to  go  to  Glasgow 
and  which  of  us  was  to  go  to  Paris.  He  got  Paris  and  I 
got  Glasgow,  but  I  visited  in  Paris  very  often  and  there 
conceived  a  liking  for  our  friends  across  the  channel, 
which  has  lasted  me  to  this  day,  and  which  the  boys  from 
Europe  brought  back  with  them. 

We  just  want  to  say  to  you  here  that  we  trust  you 
will  stay  a  long  time ;  we  trust  you  have  not  your  tickets 
home  again.  We  hope  that  this  is  the  beginning  of  a 
series  of  International  Conferences.  We  want  you  to 
know  that  the  latch-string  is  always  out  for  you  in  the 
United  States. 

Gentlemen,  having  discharged  my  duty  to  the  Conven- 
tion as  the  first  of  our  speakers  this  evening,  it  gives  me 
great  pleasure  to  turn  over  the  remainder  of  the  program 
to  your  very  excellent  toastmaster,  the  chairman  of  the 
Executive  Committee  of  this  Conference,  Mr.  Bedford. 


THE  INTERNATIONAL  TRADE  CONFERENCE         19 
Address  by  Mr.  Alfred  C.  Bedford, 

Chairman,  Executive  Committee,  International  Trade  Conference. 
Saturday  Night,  October  18,  1919. 

We  have  been  welcoming  distinguished  visitors  from 
overseas  during  the  past  months  with  more  or  less  fre- 
quency, but  none  on  a  happier  errand  or  none  with  any 
greater  feeling  of  honor  and  pleasure  than  we  experience 
tonight  in  extending  our  most  cordial  greetings  to  the 
distinguished  gentlemen  representing  the  delegations 
from  Belgium,  England,  France  and  Italy  who  are  our 
guests  tonight.  With  memories  fresh  in  our  thoughts  of 
the  marvelous  courage  and  stupendous  sacrifices  and  suf- 
ferings which  finally  culminated  in  victory  in  the  most 
tremendous  war  the  world  has  ever  witnessed,  and  with 
the  new  blood  ties  growing  out  of  the  titanic  struggle 
which  bind  us  to  each  of  your  countries,  we  cannot  look 
upon  you  as  strangers  and  do  not  believe  you  will  at  any 
time  here  feel  yourselves  in  a  strange  land.  You  will,. 
I  trust,  feel  the  thrill  of  the  new  friendships  and  the  new 
aspirations  and  sympathies  which  permeate  us  as  we 
realize  what  the  bonds  forged  by  the  heat  and  blows  of 
war  mean  to  us.  I  hope  also  you  will  experience  a  pecu- 
liar sense  of  being  at  home  amongst  us  as  you  contem- 
plate the  contributions  of  our  national  being  of  your 
countrymen,  by  men  of  your  own  flesh  and  blood,  who 
preceded  you  here,  perhaps  by  a  few  years,  perhaps  by 
a  generation  or  two,  but  who  have  made  possible  much 
of  the  achievements  that  we  are  proud  to  show  you  to- 
day. It  was  your  own  kith  and  kind  which  founded  this 
nation  and  which  has  given  us  our  highest  ideals  and 
inspirations,  and  as  during  the  next  few  weeks  you  go 
about  among  us,  you  will  never  find  yourself  without  the 
company,  not  only  of  brothers  in  sentiment  and  in  action, 
but  those  who  are  bound  to  you  by  the  ties  of  blood  and 
of  a  common  ancestry,  and  who  are  the  leaders  of  our 
country  today.  In  every  community  that  you  visit  I 
think  you  will  discover  many  evidences  of  the  impress 
which  your  racial  habits  and  customs  have  made  upon, 


20         THE  INTERNATIONAL  TRADE  CONFERENCE 

not  alone  our  business  practices,  but  the  whole  fabric  of 
our  economic,  social  and  religious  life.  In  a  word,  I 
hope  you  will  feel  no  more  of  the  strangeness  than  is 
induced  by  a  visit  to  one's  own  relatives,  even  if  it  be  as 
it  must  seem  to  some  of  you,  in  a  far  country. 

Of  course,  you  will  doubtless  observe  in  the  course  of 
your  travels,  over  the  next  few  weeks,  marked  differences 
in  the  peoples  of  different  localities,  but  I  can  neverthe- 
less guarantee  that  you  will  distinguish  no  essential  dif- 
ference in  the  cordiality  of  the  reception  accorded  you. 

But  while  your  visit  here  is  surrounded  by  this  friendly 
atmosphere,  it  possesses  an  import  for  beyond  the  grati- 
fication of  our  own  pleasure  that  this  reunion  must  in- 
spire. We  must  set  ourselves  to  the  task  of  taking  an 
inventory  of  the  necessities  of  each  of  the  nations  we 
represent,  of  the  ability  of  each  to  serve  the  other  and 
to  conceive  methods  whereby  the  machinery  of  interna- 
tional commerce  may  be  again  speedily  restored,  not  for 
the  aggrandizement  or  upbuilding  of  any  one  country, 
but  for  the  common  good,  and  the  restoration  of  the 
world.  If  we  approach  our  problems  in  this  spirit  and 
with  this  as  our  goal,  we  may  be  the  pioneers  in  the  move- 
ment for  a  great  commercial  community  of  interest,  the 
parties  to  which  will  never  again  lose  touch  with  each 
other,  and  which  will  be  for  all  time  a  guarantee  of  peace 
and  security. 

It  is  more,  then,  than  a  fraternal  welcome  that  we  of 
the  American  continent  extend  to  you  gentlemen  from 
overseas,  as  you  come  among  us  upon  this  momentous 
occasion.  It  is  as  if  you  were  a  relief  force  come  to  assist 
us  in  raising  a  blockade.  For  against  America — as 
much  as  against  Europe — a  blockade  by  the  war's  havoc 
upon  that  highly  sensitive  mechanism  of  the  world's 
trade,  threatens  and  impends.  We  in  this  country  are 
loath  to  speak  of  the  suffering  brought  about  by  the  war 
when  we  realize  how  small  ours  has  been  by  comparison 
with  the  infinite  sacrifices  you  have  been  called  upon  to 
make.  But  we  of  both  sides  of  the  ocean  know  that  in- 
ternational commerce  had  been  hundreds  of  years  in  ar- 


THE  INTERNATIONAL  TRADE  CONFERENCE         21 

riving  at  that  nicety  of  balance  by  which  the  peoples  of 
the  different  countries  were  enabled  to  enrich  their  lives 
and  add  the  sum  of  human  comfort  by  trading  freely 
with  each  other ;  and  we  know  that  by  the  breath  of  war, 
this  finely  poised  equilibrium  was  upset,  that  now,  nearly 
a  year  since  the  armistice  was  signed,  our  business  rela- 
tions are  still  far  from  the  stage  where  the  freest  inter- 
change of  commodities  can  be  resumed.  Not  only  the 
physical  comfort  and  well-being,  but  the  very  lives  of 
millions  of  people,,  depend  upon  this  modern  mechanism 
of  international  trade  being  restored,  upon  the  barriers 
which  were  erected  in  the  wake  of  war  being  leveled, 
until  the  channels  of  commerce  can  be  reopened  so  that 
the  commodities  upon  which  human  existence  depends, 
may  flow  unchecked  from  where  they  are  most  plentiful 
to  where  they  are  most  needed.  This  is  the  purpose 
which  brings  us  together. 

Almost  fantastically  strange,  economic  conditions  con- 
front us  on  every  hand,  but  we  cannot  be  surprised  to 
find  that  this  great  war,  like  other  wars,  had  enormously 
displaced  the  ratio  between  commodities  and  money,  re- 
ducing the  supplies  of  commodities  and  enormously  aug- 
menting the  paper  currency  and  deposits  set  off  against 
them.  We  have  to  deal  with  the  outcome  of  this  situa- 
tion, which,  as  it  was  inevitable  that  it  should  be,  is  high 
prices,  or  rather  one  of  the  fundamental  causes  of  high 
prices,  and  it  seems  to  me  that  much  of  the  success  of 
our  efforts  just  now  will  depend  upon  how  we  regard 
this  stepchild  of  the  war. 

You  are  probably  familiar  with  the  annual  review  of 
the  Swiss  Bank  Corporation  for  the  year  1918,  which  in 
its  summary  shows  that,  leaving  Russia  out  of  consider- 
ation, the  note  circulation  of  the  belligerents  increased 
during  the  war  by  447  per  cent,  while  during  the  same 
period  their  gold  reserves  increased  only  45  per  cent. 

To  me,  the  existence  of  this  great  mass  of  paper  cur- 
rency precludes  the  possibility  of  a  rapid  fall  in  prices,, 
even  if  such  a  trend  would  not  find  formidable  obstacles 
in  the  great  volume  of  national  debts  and  the  determina- 


22          THE  INTERNATIONAL  TRADE  CONFERENCE 

tion  of  labor  to  keep  wages  high.  High  prices  may  be 
regarded  as  a  symptom  of  unsoundness,  but  we  can  all 
appreciate  the  danger  which  would  accompany  any  rapid 
fall  in  prices  which  would  cause  goods  to  sell  at  less  than 
they  cost,  and  the  repayment  in  dear  money  of  debts 
which  had  been  contracted  in  cheap  money. 

For  these  primary  reasons  it  seems  as  if  we  must  be 
reconciled  for  the  time  to  a  changed  valuation  of  money 
and  adjust  ourselves  to  a  permanently  higher  level  of 
prices.  I  mentioned  these  few  things  because  in  my 
opinion  they  have  much  to  do  with  the  matter  of  credits, 
and  credit  is  the  kernel  of  the  world's  problems  today. 
The  debt  of  the  Allies  to  America  is  of  an  entirely  short- 
dated  character,  and  it  would  seem  that  commercial  re- 
covery will  have  a  close  relationship  to  the  funding  of 
these  debts  over  a  lengthy  period.  This  will  permit  of 
the  more  free  movement  of  foodstuffs  and  raw  mate- 
rials which  are  so  urgently  needed  overseas,  and  which 
we  are  determined  to  strain  to  the  utmost  limit  of  our 
ability  to  supply.  The  question  of  high  prices  is  neither 
of  dominating  influence  now,  nor  will  it  be  of  supreme 
importance,  when  credits  in  the  long  future,  are  being 
liquidated.  The  present  duty  is  to  arrange  these  credits 
rapidly  enough  to  relieve  the  existing  international 
situation. 

We  are  anxious  to  do  this.  We  are  prompted  not  alto- 
gether by  business  reasons  to  help  set  the  world  right  and 
to  bring  about  real  prosperity,  which  we  feel  can  never 
exist  while  so  large  an  area  of  former  economic  activities 
are  unproductive. 

No  trade  conference  ever  faced  more  interesting  or 
perhaps  more  difficult  problems  than  those  that  will  come 
before  us.  A  good  business  man,  however,  always  wel- 
comes new  problems  that  challenges  his  ingenuity  and 
strength.  Great  Britain,  France,  Italy,.  Belgium  and  the 
United  States  are  all  in  the  same  boat,  in  a  sea  from 
which  buoys  and  lights  have  been  mostly  swept  away. 
We  must  chart  new  courses  to  reopen  channels  of  trade. 
We  must  do  away  with  artificial  war-created  obstacles 


THE  INTERNATIONAL  TRADE  CONFERENCE         23 

as  rapidly  as  possible  to  permit  the  resumption  of  normal 
movement  of  goods  and  credits. 

The  supply  of  labor  everywhere  is  inadequate,  hence 
the  necessity  of  increased  individual  industry  and  pro- 
duction. Fortunately  we  have  learned  to  multiply  pro- 
duction per  capital  by  more  widespread  development  and 
use  of  machinery.  Those  of  us  who  have  witnessed  the 
operation  of  marvelous  devices  created  to  serve  as 
agencies  of  destruction  will  be  little  surprised  to  find  even 
more  ingenious  use  made  of  power-driven  mechanical 
devices  on  the  interest  of  reconstruction.  Some  of  our 
efforts  in  this  direction  you  will  see  for  yourselves,  as  we 
shall  open  wide  to  you  the  doors  of  our  greatest  industrial 
centers.  We  do  this,  knowing  that  we  are  not  divulging 
our  business  secrets,  but  rather  exchanging  ideas  for 
those  equally  valuable.  You  can  teach  us  perhaps  more 
than  we  can  teach  you,  and  I  warn  you  we  do  not  intend 
to  have  you  leave  these  shores,  hospitable  as  they  may 
appear,  until  we  have  secured  every  bit  of  valuable  in- 
formation which  we  can  get  from  you.  I  therefore  wel- 
come you  to  this  Conference  that  we  may  together  study 
in  the  common  interest,  exceeding  in  importance  merely 
selfish  or  national  aspirations,  the  re-establishment  of  the 
processes  of  industry  and  of  commerce  and  the  restora- 
tion of  international  trade  to  normal  channels.  To  the 
accomplishment  of  these  and  kindred  aims  the  Interna- 
tional Trade  Conference  will  address  itself. 


24         THE  INTERNATIONAL  TRADE  CONFERENCE 
Address  of  M.  Florimond  Hankar. 

Chairman  of  the  Belgian  Mission. 
Saturday  Night,  October  18,  1919. 

Were  I  to  indulge  in  the  greatest  extravagance  in  the 
use  of  words,  I  know  I  should  fail  to  express  to  you  the 
full  measure  of  our  appreciation  of  the  kindly  attention 
and  hospitality  which  has  been  ours  since  we  arrived  on 
your  shores. 

We  Belgians  already  are  everlastingly  indebted  to  you 
Americans.  Our  debt  of  gratitude  to  you  is  one  we  never 
shall  be  able  to  repay.  And  now,  I  and  my  colleagues 
find  ourselves  increasing  that  obligation.  And  I  may  as 
well  be  frank  and  say  that  we  are  having  the  time  of  our 
lives  doing  it.  We  are  shameless  about  it.  However,  it 
is  all  your  fault ;  I  do  not  believe  any  creditors  ever  were 
so  royally  welcomed  and  entertained  by  their  debtors  as 
we  have  been.  It  is  going  to  be  rather  hard  to  leave  you 
and  your  country  when  the  time  comes  for  us  to  go  home. 
We  have  only  been  here  two  days,  but  I  know  we  are 
going  to  hate  to  leave  Atlantic  City. 

We  have  heard  much  of  Atlantic  City,,  but  we  never 
dreamed  that  it  was  like  this.  We  have  our  Ostend,  but 
we  do  not  have  the  wonderful  hotels  and  buildings  such 
as  you  have  here.  After  a  strenuous  five  days  in  New 
York,  this  is  a  most  welcome  change.  Coming  here,  I 
was  afraid  we  would  find  it  difficult  to  work  with  your 
alluring  boardwalk  and  your  beach  right  under  our  Tray- 
more  windows.  Atlantic  City,  however,  I  should  say,  is  a 
place  where  one  may  work  and  rest  all  at  the  same  time. 
I  shall  carry  away  with  me  very  pleasant  memories  of 
your  city. 

We  of  the  Belgian  Mission  have  been  amazed  at  the 
manner  in  which  we  are  being  conducted  on  this  tour  by 
the  various  committees  in  charge.  Everything  is  made 
so  delightful  for  us.  All  our  wants  are  anticipated  and 
attended  to  with  a  graciousness  that  is  almost  making 
us  forget  how  to  look  out  for  ourselves.  I  am  afraid  you 
will  spoil  us. 


THE  iNTERNAtlONAL  TRADE  CONFERENCE  25 

I  am  perfectly  sure  from  what  I  have  seen  of  the 
efficient  arrangements  which  you  gentlemen  and  your 
associates  have  made  that  this  trip  will  be  most  charming 
and  most  successful.  For,  us,  the  tour  holds  greater  in- 
terest perhaps  than  you  can  realize.  We  Belgians  are 
being  enabled  to  see  and  to  meet  a  people  who  were  the 
salvation  of  our  country ;  who  fed  us  when  we  hungered, 
who  cheered  us  on  when  we  were  low  in  spirits  and  who 
finally  gave  themselves  whole-heartedly  to  our  cause  and 
that  of  our  Allies.  We  should  like  to  be  able  to  tell  every 
American  how  deeply  grateful  Belgium  is.  Belgium  for 
all  time  to  come  will  cherish  the  friendship  of  America. 

We  are  looking  forward  with  pleasure  to  the  Trade 
Conference.  I  am  certain  it  will  be  a  great  success  with 
so  many  Europeans  here.  You  know  we  Europeans  do 
not  travel  as  you  Americans  do.  We  do  not  like  great 
distances.  We  do  not  go  across  the  seas  with  as  little 
thought  as  you  do.  But  you  made  this  trip  across  the 
Atlantic  so  attractive  and  so  easy  for  us  that  we  have 
come  in  large  numbers  to  your  Conference.  I  am  sure 
that  a  great  deal  of  good  for  you  and  for  us  will  come  out 
of  this  meeting  in  Atlantic  City  and  the  tour  you  have 
arranged  for  us. 


26 


THE  INTERNATIONAL  TRADE  CONFERENCE 


Address  by  M.  Eugene  Schneider, 

Chairman  of  the  French  Mission. 
Saturday  Night,  October  18,  1919. 

Gentlemen:  Today  is  our  first  official  meeting  with  the 
Chamber  of  Commerce,  and  it  is  a  great  pleasure  for  me 
to  thank  you  for  all  the  courtesy  and  kindness  you  have 
shown  us  since  we  landed. 

This  meeting  at  a  banquet  tonight  before  the  opening 

of     our     meetings     is 
quite  a  new  idea. 

We  generally  have 
banquets  after  the 
conclusion  of  our 
meetings,  but  you 
thought,  and  you  were 
quite  right  to  think 
so,  that  the  best  way 
was  to  make  friends 
at  first  and  then  to 
set  to  work  in  a  more 
friendly  manner.  We 
are,  many  of  us,  engi- 
neers, and,  of  course, 
we  easily  understand, 
too,  that  before  start- 
ing the  engine  we 
must  feed  the  boiler 
and  supply  it  with 
fuel. 

The  hospitality  of  your  people  was  well  known  to  the 
Frenchmen.  More  than  a  century  ago,  in  the  month  of 
July,  1778,  the  French  Ambassador  to  America  wrote 
to  Count  de  Vergennes :  "The  amiability  of  the  Ameri- 
cans is  so  great  that  I  dare  not  describe  it,  lest  I  should 
be  supposed  to  exaggerate." 

You  chose  this  seaside  place  for  our  meetings  in  order 
to  let  us  enjoy  our  time  when  our  daily  work  would  be 
done.  We  may  breathe  fresh  air  and  in  a  similar  man- 


M.    SCHNEIDER. 


THE  INTERNATIONAL  TRADE  CONFERENCE          27 

ner  our  hearts  are  filled  with  a  fresh  feeling  of  friend- 
ship while  we  are  staying  amongst  our  friends.  This 
ocean  is  no  more  an  obstacle,  but,  on  the  contrary,  it  will, 
in  the  future,  help  us  to  draw  nearer  to  each  other.  As 
it  is  the  fashion  just  now  for  some  old  European  nations 
to  change  their  names,  let  us  change  the  name  of  the 
ocean  and  let  us  write  on  the  new  map  of  the  world :  the 
"Atlantic  Channel." 

We  have  come  over  to  America  hoping  that  frequent 
and  mutual  visits  might  make  us  understand  better  and 
know  each  other  better.  We  on  both  sides  the  new  chan- 
nel know  ourselves,,  we  know  our  plans,  we  know  our 
own  character  better  than  any  traveler  or  expert  might 
hope  to  know  after  traveling  only  a  few  weeks  in  our 
countries. 

A  man  was  run  over  by  a  motor  car  and  was  taken  to 
the  hospital  with  bad  wounds.  His  wife  was  sent  for  and 
was  shown  the  patient's  bed.  The  man  had  fainted  and 
the  doctor  said  to  the  poor  woman :  "I  am  deeply  sorry, 
Madam,  your  husband's  sufferings  have  been  put  to  an 
end  by  death."  The  man  heard  and  said  "I  am  not  dead." 
"Hush,"  answered  the  wife,  "you  keep  quiet,  old  man; 
the  doctor  knows  better  than  you."  Well,  gentlemen,  we 
need  not  have  such  doctors  between  you  and  us  and  we 
all  know  our  needs  and  weaknesses  and  troubles  better 
than  any  of  those  doctors  who  too  often  believe  in  their 
own  infallible  knowledge.  They  often  make  me  think 
of  that  gentleman  who  was  choosing  a  pair  of  spectacles 
at  the  optician's:  "These  glasses,"  he  says,  "are  not 
strong  enough  for  me."  "But,  sir,  they  are  No.  2." 
"What  have  you  next  to  No.  2,  and  after  that?"  "After 
No.  1,  sir,  you  will  want  a  dog  to  lead  you." 

We  have  come  to  America  to  work  with  you  and  study 
what  we  can  do  for  the  reinstatement  of  the  world  after 
the  terrible  hurricane  it  has  gone  through.  We  have  not 
come  for  our  own  private  affairs.  Just  before  we  left 
Paris  we  were  received  by  Mr.  Poincare,  the  President  of 
the  French  Republic,  who  said  to  me :  "Americans  are  not 
prejudiced — they  are  always  ready  to  listen,  and,  after 


28          THE  INTERNATIONAL  TRADE  CONFERENCE 

they  have  carefully  considered  your  arguments,  they  will 
tell  you  frankly  'Yes'  or  'No.'  "  My  experience  of  your 
countrymen  has  shown  me  that  Mr.  Poincare  is  right. 

Many  things  have  to  be  done  to  restore  our  countries. 
We  have  to  examine  and  study  a  great  number  of  ques- 
tions and  subjects.  We  are  not  expecting,  of  course,  that 
our  work  will  bring  us  at  once  to  a  definite  settlement 
of  the  world.  We  must  needs  have  a  permanent  organ- 
ization and  establish  frequent  exchanges  of  views,  and 
get  used  to  work  together.  We  must  try  and  find  out  the 
best  means  of  arranging  our  affairs  in  order  to  make  it 
as  improbable  as  may  be  that  humanity  would  have  to 
suffer  from  another  war,  if  not  forever,  at  least  for  a 
long  period  of  years. 

Yesterday  I  was  present  at  the  banquet  of  the  Ameri- 
can Manufacturers'  Export  Association  and  we  had  the 
pleasure  of  hearing  a  speech  delivered  by  Secretary  of 
Commerce  Redfield  on  that  subject.  Mr.  Bedford,  who 
was  my  neighbor,  will  certainly  agree  with  me  when  I 
say  that  this  speech  was  the  best  we  could  have  hoped  to 
hear. 

Everyone  in  this  country  seems  to  understand  things 
as  we  do  ourselves  as  regards  the  principles — the  means 
and  ways  only  are  subject  to  discussion.  Let  us  set  to 
work.  I  will  not  detain  you  any  longer,  Gentlemen,  and 
as  a  conclusion  I  can  find  no  other  that  would  better  meet 
with  the  approval  of  all  my  colleagues  than  to  thank  you 
again  for  all  your  courtesies  and  kindness  and  tell  you 
what  a  great  pleasure  it  is  for  us  to  stay  with  you  and 
admire  your  great  high-minded  and  magnificent  country. 


THE  INTERNATIONAL  TRADE  CONFERENCE          29 
Address  by  Mr.  Marshall  Stevens,  M.  P., 

Member  of  the  British  Mission. 
Saturday  Night,  October  18,  1919. 

I  thank  you,  Mr.  Chairman  and  Gentlemen,,  exceedingly, 
on  behalf  of  the  British  Mission  for  the  cordial  manner 
in  which  you  have  received  the  toast  to  which  I  am  re- 
sponding. 

We  come  here  to  you  in  your  great  country  in  no  sense 
officially,  but  simply  as  nominees  of  the  Associated  Cham- 
bers of  Commerce  of  Great  Britain,  of  the  Federation  of 
British  Industries,  with,  I  hope,  one  nominee  of  the 
Bankers'  Association  of  Great  Britain. 

Not  one  of  us  is  authorized  to  speak  on  behalf  of  the 
associations  which  have  nominated  us,  much  less  can  we 
speak  with  any  authority  on  behalf  of  our  country. 

You  must,  therefore,  please  accept  us  as  individuals. 

We  are  not  here  in  any  sense  as  suppliants,  but  as 
Anglo-Saxons,  glad  and  ready  to  join  Anglo-Saxons,  and 
with  them  their  guests  from  other  countries,  in  carrying 
out  the  great  work  of  commercial  reconstruction  which 
the  world  so  badly  requires. 

Sir  Arthur  Shirley  Benn,  M.  P.,  K.  B.  E.,  whom  we 
have  elected  as  our  chairman,  has  lived  a  considerable 
portion  of  his  life  in  America,  some  of  the  time  in 
Canada,,  but  during  most  of  his  business  life  as  a  member 
of  the  firm  of  Hunter  Benn  &  Co.,  at  Mobile,  Alabama, 
where  he  also  acted  as  British  Vice-Consul. 

Sir  Arthur  now  devotes  himself  to  public  duties,  and 
is  honorable  treasurer  to  the  Associated  Chambers  of 
Commerce,  and  he  is  always  available  to  assist  in  the 
advancement  of  the  interests  of  the  British  Empire. 

Lady  Benn  gave  up  her  American  independence  when, 
as  Miss  Luling  of  Alabama,  she  married  our  chairman. 

The  Hon.  John  G.  Jenkins,  a  former  Premier  of  South 
Australia,  afterward  acted  as  Agent-General  in  Great 
Britain  for  that  state.  For  the  last  ten  years  he  has 
been  an  active  member  of  the  London  Chamber  of  Com- 
merce, and  was  one  of  the  founders,  and  now  is  honorable 


30          THE  INTERNATIONAL  TRADE  CONFERENCE 

treasurer  of  the  British  Imperial  Council  of  Commerce. 

Mr.  Jenkins  was  born  in  the  United  States,  and  his 
American  birth,  his  colonial  activities,  and  his  renewed 
activity  in  Great  Britain  aptly  illustrate  the  Anglo-Saxon 
character. 

Bailie  John  King,  a  native  of  Glasgow,  where  he  has 
been  Senior  Magistrate,  can  trace  his  family  back 
through  a  long  line  of  Covenanting  ancestors;  he  is  our 
best  known  light  casting  founder,  and  a  well-known 
authority  upon  the  heavy  metals. 

Bailie  King,  who  will  be  better  recognized  here  as 
Judge  King,  is  a  member  of  the  Council  of  the  Federation 
of  British  Industries,  which  has  nominated  him  to  attend 
this  Conference. 

Mr.  Frank  Moore,  of  Leicester,  who  is  also  a  nominee 
of  the  Federation  of  British  Industries,  is  an  authority 
upon  textiles,  and  is  chairman  of  one  of  our  largest  com- 
binations of  hosiery  manufacturers,  having  factories  in 
several  towns  in  Great  Britain. 

Mr.  Moore  is  president  of  the  Leicester  Chamber  of 
Commerce,  vice-president  of  the  Hosiery  Manufacturers' 
Association,,  and  past  master  of  one  of  our  old  city  com- 
panies— the  Framework  Knitters. 

Sir  James  Hope  Simpson,  who  as  general  manager  of 
the  Bank  of  Liverpool  and  Martins  Bank,  ranks  in  this 
country  with  the  president  of  your  large  banks,  is  a 
worthy  follower  in  the  footsteps  of  his  father,  who  won 
great  eminence  in  a  similar  position,  and  his  business 
relationships  with  this  country  make  him  very  well 
known  here,  especially  to  the  banking  community. 

Our  secretariat — provided  by  the  Federation  of  British 
Industries — is  headed  by  Mr.  George  Berks,  assisted  by 
Lieutenant  A.  S.  Jarratt. 

We  have  all  been  vigorously  employed  on  war  work, 
and  you  will  find  us  no  less  anxious  and  no  less  willing  to 
accomplish  what  is  possible  in  the  reconstruction  of  inter- 
national commerce.  We  do  not  seek  to  limit  international 
commerce  to  its  pre-war  channels;  rather  do  we  look  to 
its  great  expansion  in  all  countries,  and  by  individuals 


THE  INTERNATIONAL  TRADE  CONFERENCE          31 

who  have  not  hitherto  engaged  in  it,  because  we  believe 
that  no  greater  bond  can  endow  the  world  in  peace,  com- 
fort and  prosperity  than  an  International  League  of 
Commercial  Fellowship. 


Address  by  Comm.  Dr.  Ferdinando  Quart  ieri, 

Chairman  of  the  Italian  Mission. 
Saturday  Night,  October  18,  1919. 

The  initiative  taken  by  the  Chamber  of  Commerce  of 
the  United  States,  in  response  to  which  the  Italian  Eco- 
nomic Mission  has  come  to  America,  is  a  particularly 
timely  and  happy  one.  The  war  has  taught  us  to  appre- 
ciate the  value  of  personal  contact  between  the  nations, 
and,  thanks  to  this  personal  contact,  the  ties  of  mutual 
esteem  and  mutual  confidence  between  the  Allies  have 
been  fostered  and  strengthened.  Now  that  peace  has 
crowned  our  united  efforts,  we  must  not  allow  these  ties 
to  be  weakened. 

Through  personal  contact  only  can  we  hope  to  arrive 
at  a  satisfactory  solution  of  the  difficulties  and  manifold 
needs  to  which  the  war  has  given  rise. 

That  the  initiative  in  favor  of  the  International  Trade 
Conference,  which  is  bringing  together  the  representa- 
tives of  the  commercial  and  industrial  interests  of  the 
leading  allied  nations,  should  have  been  taken  by  the 
Americans  clearly  shows  the  generous  and  helpful  spirit 
in  which  they  are  prepared  to  study  our  needs  and  to 
come  to  our  assistance. 

Italy  responds  whole-heartedly  to  this  invitation.  Not 
only  are  her  needs,  perhaps,,  more  urgent  than  those  of 
any  other  European  country,  but  the  bonds  which  unite 
Italy  to  America  are  so  numerous,  and  so  strongly  felt 
by  the  Italian  people,  that  from  no  other  quarter  could 
such  an  initiative  have  been  so  welcome.  America  is 
known  and  loved  in  the  humble  homes  of  our  workers,  by 


32          THE  INTERNATIONAL  TRADE  CONFERENCE 

the  masses  of  our  people,  even  more  than  by  our  upper 
classes;  and  this  intimate  knowledge  is  the  basis  of  the 
indestructible  popularity  which  America  enjoys  in  Italy. 
But  the  Italian  Economic  Mission  realizes  that  the 
work  before  it  aims  at  the  economic  reconstruction  of  all 
the  Allied  peoples  who  have  suffered  in  this  terrible  war ; 
nor  does  it  forget  the  new  states  which  have  arisen  in  our 
midst,  and  which,  even  though  their  representatives  are 
not  now  with  us,  are  yet  fully  entitled  to  the  solicitous 
help  of  their  richer  and  more  powerful  Allies.  In  this 
spirit,  and  with  these  aims,  the  Italian  Mission  sends  a 
greeting  to  the  American  people. 


THE  INTERNATIONAL  TRADE  CONFERENCE 


33 


Address  of  Mr.  Edward  A.  Filene. 

Saturday  Night,  October  18,  1919. 

Mr.  Chairman  and  Gentlemen:  I  want  to  speak  to  you 
very  briefly  about  the  spirit  with  which  the  members  of 
these  missions  have  accepted  the  invitation  of  the  Cham- 
ber of  Commerce  of  the  United  States  and  have  crossed 
the  Atlantic  in  order  to  join  us  in  these  conferences.  It 

is  very  difficult  for  us 
to  realize,  and  they  are 
too  modest  to  tell  us, 
what  sacrifices  these 
distinguished  guests  of 
ours  have  made  to 
leave  their  homes  and 
their  countries  and 
their  personal  business 
to  come  here  in  this 
most  critical  time. 

All  of  them  are 
men  of  large  affairs 
who  have  given  them- 
selves without  stint  to 
their  countries'  need 
through  four  long  ex- 
hausting years.  If 
they  permitted  them- 
selves to  yield  to  their 
personal  preference, 

nobody  could  blame  them  if  they  had  said :  "We  are  tired 
and  we  need  rest.  We  must  have  a  chance  to  spend  a  few 
months  in  quiet  at  home  before  we  do  more  work.  We 
cannot  go." 

Aside  from  this,  all  of  them  have  much  at  stake  in  the 
developments  of  the  coming  mouths.  In  all  these  coun- 
tries national  elections  are  pending  or  likely  to  come, 
which  will  determine  the  most  vital  national  policy, 
policy  which  will  affect  seriously  both  their  country's 
future  and  their  business  future.  Still  more  immediate, 


EDWARD    A.    FILENE 


34         THE  INTERNATIONAL  TRADE  CONFERENCE 

they  are  faced  in  most  cases  with  the  necessity  of  re- 
establishing their  industries  and  their  business  affairs 
on  a  peace  basis.  For  four  years  their  factories  have 
been  devoted  almost  wholly  to  war  work  and  must  be  re- 
adapted  to  the  requirements  of  peace  production.  Some 
of  them  have  establishments  in  the  war  zone  which  the 
enemy  destroyed  during  the  war  and  which  must  be  re- 
built from  the  ground  up  in  the  midst  of  serious  difficul- 
ties in  obtaining  the  necessary  labor  and  materials. 

Do  you  know  that  one  distinguished  member  of  the 
Belgian  Mission  had  factories,  one  of  which  was  stripped 
of  its  machinery  and  the  other  was  not  only  stripped  of 
its  machinery  by  the  enemy,  but  the  very  building  itself 
was  torn  down  to  be  carried  into  Germany  and  set  up 
again  on  German  soil.  These  factories  will  be  restored, 
but  you  could  not  blame  this  gentleman  had  he  said  that 
the  necessity  of  restoring  his  interests  demanded  his 
personal  presence. 

Take  M.  Schneider,  the  head  of  the  French  Mission. 
His  every  minute  during  the  war,  his  whole  existence, 
has  been  devoted  to  the  manufacture  of  the  vital  muni- 
tions needed  by  the  French  army  on  the  western  front. 
Not  only  that,  but  the  artillery  supplied  to  our  own  boys 
was  to  an  important  degree  the  product  of  the  Creusot 
Works.  With  practically  his  whole  plant  devoted  to  the 
manufacture  of  artillery  and  other  military  supplies,  he 
is  now  faced  with  the  problem  of  adapting  it  to  peace 
production  for  commercial  purposes.  In  spite  of  the 
almost  overwhelming  character  of  this  demand  for  his 
presence  he  has  left  all  his  vast  personal  interests  to  come 
here  and  lend  us  the  benefit  of  his  able  advice  and  help. 
And  the  same  spirit,  the  spirit  of  sacrificing  personal 
interest  at  the  call  of  patriotic  service,  has  dominated  all 
the  members  of  these  groups  in  coming  to  America,  at 
this  time. 

There  can  be  only  one  reason  for  this  attitude.  It  is 
based  on  faith  in  America,  faith  that  American  help 
which  came  to  the  front  when  need  required  and  when 
the  American  people  understood  in  the  war,  will  not  be 


THE  INTERNATIONAL  TRADE  CONFERENCE         35 

lacking  now.  This  faith,  added  to  a  clear  vision  that  in 
the  present  world  situation  America  is  equally  concerned 
with  Europe,  has  led  these  missions  to  accept  the  invita- 
tion of  the  Chamber  of  Commerce  of  the  United  States  to 
join  with  us  in  a  discussion  of  the  present  international 
business  problem  and  means  for  its  solution. 

The  business  men  of  the  world  are  now  called  upon  to 
cope  with  a  question  which  in  magnitude  and  scope  is 
beyond  anything  we  have  ever  experienced.  Just  as  in 
the  war  the  generals  of  the  Allied  armies  were  forced  to 
meet  problems  for  which  they  had  received  no  training 
in  the  schools  attended  prior  to  the  great  war,,  the  leaders 
of  business  are  now  obliged  to  plan  on  lines  largely  un- 
charted before.  These  are  problems  for  which  there  are 
no  rules  laid  down  by  experience.  We  must  plan  with 
new  and  original  thinking  to  meet  them. 

We  have,  however,  during  the  war,  learned  one  great 
lesson — that  of  our  interdependence  on  one  another. 
And  business  men  everywhere  know  further  that  all 
trade,  whether  national  or  international,  to  be  successful 
must  be  mutually  profitable.  It  is  on  that  our  present 
agreements  must  rest. 

These  conferences  will  necessarily  involve  the  discus- 
sion of  supplying  Europe  with  raw  materials  and  ma- 
chinery. But  it  must  not  be  inferred  that  the  nations  of 
Europe  have  not  already  attacked  the  problem  of  recon- 
struction with  determination  and  initiative — with  a  de- 
gree of  success  not  wholly  understood  in  this  country. 
The  public  has,  I  am  afraid,  been  somewhat  misled  on 
this  point  by  men  who  have  spent  a  short  time  in  Europe, 
seeing  only  the  destruction,  with  no  time  for  the  less 
dramatic  work  of  reconstruction  slowly  but  surely  go- 
ing on. 

Yet,  however  hard  these  nations  work,  they  cannot 
produce  effectively  without  the  raw  materials  and  food 
which  they  need  as  primary  requisites.  And  these  com- 
modities they  cannot  get  as  practical  prices  so  long  as 
the  present  rate  of  exchange  continues.  Throughout  the 
war  they  have  been  devoting  all  their  productive  power 


36          THE  INTERNATIONAL  TRADE  CONFERENCE 

to  the  needs  of  the  war,  and  buying  of  us  the  goods  which 
they  formerly  produced.  The  resulting  export  of  gold 
and  lack  of  goods  to  export  has  produced  an  alarmingly 
adverse  exchange  rate,  an  exchange  rate  which  is  not 
only  damaging  to  Europe,  which  forms  as  well  an  invisi- 
ble wall  against  our  export  to  Europe  of  our  surplus  pro- 
duction. We  shall  not  only  be  doing  our  duty  and  per- 
forming a  generous  act,  but  we  shall  be  doing  the  most 
business-like  act  of  which  we  are  capable,  if  we  extend 
to  them  the  credit  which  they  need  and  enable  them  to 
purchase  the  raw  materials  and  food  they  require  for 
their  restoration  to  a  normal  productive  basis. 


THE  INTERNATIONAL  TRADE  CONFERENCE         37 
Address  by  Sir  Arthur  Shirley  Benn,  K.  B.  E. ;  M.  P. 

Chairman  of  the  British  Mission. 
Saturday  Evening,  October  18,  1919 

I  presume  that  your  toastmaster  tonight  thinks  that 
it's  safe  to  call  upon  one  who  was  born  in  Ireland  and 
who  has  spent  many  years  of  his  life  in  America ;  but  it 
is  not  always  safe  to  call  upon  a  man  unexpectedly  for  a 
speech. 

Gentlemen,  we  do  not  come  to  America  today  as 
strangers ;  nor  do  we  come  as  rival  nations  seeking  after 
trade;  we  come  here  as  friends — friends  made  by  the 
war.  Jefferson  once  stated  that  there  was  no  way  in 
which  friendship  could  be  made  so  quickly,  or  so  surely, 
as  by  having  men  dying  side  by  side  in  the  same  cause. 
We  have  all  been  striving  for  the  same  ideas.  We  have 
all  had  the  same  principles  of  liberty,,  of  democracy  and 
of  freedom,  and  we  have  fought  to  maintain  civilization. 
Today  we  realize,  not  only  the  condition  of  Belgium,  not 
only  the  condition  of  France  and  Italy,  but  many  of  us 
have  seen  the  devastated  territories;  we  have  seen  the 
destruction  that  has  been  waged  and  we  all  realize  that 
reconstruction  can  only  take  place  by  common  sense, 
good  will  and  the  determination  of  those  Allies  who 
fought  for  the  preservation  of  civilization.  Gentlemen, 
the  world  is  large  enough,  the  job  big  enough,  for  all  of 
us  to  put  our  shoulders  together  to  see  how  we  can  work 
for  the  common  weal;  and  I,  knowing  America  as  I  do, 
have  not  the  slightest  hesitation  in  saying  that  if  we  all 
pull  together — we  can  pull  together — we  will  reconstruct 
these  countries  and  hand  them  down  to  our  descendants 
not  one  whit  worse  than  when  we  came  into  them. 


38          THE  INTERNATIONAL  TRADE  CONFERENCE 


Meeting  of  All  Committees. 

Monday,  October  20,  1919. 

A  general  meeting  of  all  the  committees  was  held  in 
the  Belvedere  Room  of  the  Hotel  Traymore  at  10  A.  M., 
October  20,  presided  over  by  Mr.  Alfred  C.  Bedford,  chair- 
man of  the  Executive  Committee  of  the  International 
Trade  Conference,  as  a  prelude  to  the  intensive  work  of 
the  various  topical  committees. 


Address  of  Mr.  Alfred  C.  Bedford. 

We  began  today  the  practical  work  for  which  this 
Conference  was  assembled.  We  divide  into  committees, 
which  will  consider  intimately  and  minutely  the  very 
practical  problems  which  confront  us  in  the  re-establish- 
ment of  the  world's  trade. 

And  at  the  very  outset  I  would  like  to  suggest  some- 
thing of  the  point  of  view  of  the  American  business  man 
in  his  approach  to  these  great  questions.  We  in  America 
appreciate  the  enormous  sacrifices  made  by  our  Allies  in 
fighting  the  war;  we  know  how  your  blood  and  your 
treasures  poured  forth  without  stint.  We  know  that  the 
end  of  the  war  finds  your  great  countries  with  huge 
national  debts,  and  with  needs  of  the  most  pressing  char- 
acter for  raw  materials  and  food.  We  appreciate  that 
the  supreme  need  of  the  world  is  that  Europe  and 
America  shall  be  restored  to  the  utmost  productivity 
without  a  moment's  delay,,  and  that  to  accomplish  that 
there  must  be  cooperation  between  Europe  and  the 
United  States. 

America  was  late  in  entering  the  war,  but  when  we 
did  enter  we  sought  to  bear  our  full  responsibility.  Now, 
the  responsibilities  of  victory  rest  upon  our  shoulders 
quite  as  much  as  did  the  responsibilities  of  war.  The 
American  people  realize  that  the  paths  of  destiny  call  us 


THE  INTERNATIONAL  TRADE  CONFERENCE          39 

to  a  comprehension  of  the  problems  of  the  world  at 
large.  The  American  business  men  are  fully  conscious 
of  the  truth  of  President  Wilson's  statement  that  the 
destinies  of  the  world  will  henceforth  in  large  measure 
rest  with  those  who  conduct  the  commerce  of  the  world. 

We  feel  that  there  is  a  new  call  to  arms  to  the  Ameri- 
can business  man  to  enlist  in  the  cause  of  re-establishing 
economic  order  and  of  maintaining  peace  and  social 
progress.  We  want  to  join  in  this  cause  with  the  busi- 
ness men  of  France,  of  England,  of  Belgium  and  of  Italy. 

Those  gathered  here  are  business  men,  practical  men. 
We  come  together  in  a  spirit  of  the  warmest  friendship 
and  desire  to  cooperate.  That  is  the  keynote  of  the  call 
of  this  Conference.  Sentiment  rules  the  world,  in  busi- 
ness as  in  all  else.  And  yet  as  business  men  we  are  accus- 
tomed to  consider  the  practical  details  of  the  problems 
which  come  before  us.  Let  us  see,  then,  if  at  the  very 
outset  of  our  deliberations  we  cannot  set  forth  a  few  of 
the  fundamental  facts  and  considerations  which  must 
underlie  all  our  conclusions. 

We  are  told  that,  by  reason  of  the  high  prices  prevail- 
ing here  and  the  high  rate  of  exchange,  it  may  be  found 
necessary  for  some  countries  to  buy  in  other  countries 
than  our  own. 

Gentlemen,  let  us  be  frank,  for  I  am  sure  you  would 
want  me  to  be  nothing  less.  We  of  the  United  States 
are  eagerly  desirous  of  extending  our  trade  wherever  it 
can  be  wisely  and  legitimately  done,  but  we  would  be  the 
last  to  suggest  that  any  nation  should  buy  our  goods  if 
they  can  obtain  the  same  goods  under  better  terms  else- 
where. We  of  the  United  States  feel  that  if  we  are  to 
induce  the  world  to  buy  our  goods,  we  must  meet  the 
competition  of  the  world  fairly,  honestly  and  openly. 
Every  nation  should  buy  in  the  best  possible  market,  and 
the  future  health  of  the  commerce  of  the  world  depends 
upon  a  thorough-going  application  of  the  principle.  But 
we  are  eager  for  your  trade,  as  we  are  sure  you  are  for 
ours.  We  want  you  to  have  our  goods  and  we  want  to 
buy  yours. 


40          THE  INTERNATIONAL  TRADE  CONFERENCE 

We  are  conscious  that  no  problems  will  come  before 
this  Conference  of  more  serious  moment  than  those  of 
foreign  exchange  and  foreign  credits.  To  discuss  these 
with  you  in  a  spirit  of  cooperation  and  friendliness  we 
have  invited  to  meet  you  here  some  of  our  leading  finan- 
ciers. These  delicate  questions  of  credit  and  exchange 
are  essentially  bankers'  problems  and  we  want  you  to 
consider  them  with  our  bankers  in  the  spirit  in  which 
they  will  meet  you,  and  that  is  one  of  an  earnest  desire 
to  make  some  progress  in  solving  the  complicated  situa- 
tions which  confront  both  you  and  us. 

We  realize  the  necessity  of  extending  credits,  and  we 
are  most  eager  to  find  a  practical  way  out  of  this  puz- 
zling situation.  We  realize  the  necessity  of  international 
cooperation  among  business  men,  cooperation  of  a  kind 
we  have  never  had  before.  We  want  to  work  out  these 
problems  with  you  as  friends  and  as  co-laborers. 

You  will  have  much  to  tell  us  of  conditions  in  your 
countries,  and  of  how  we  can  aid  each  other.  But  on 
certain  points  we  shall  be  peculiarly  interested  to  have 
information. 

1.  What  are  the  menances  of  social  order  and  stability 
in  the  different  countries  of  Europe  today?     Have  the 
dangers  of  Bolshevism  or  Socialism  passed?     Is  there  any 
danger  anywhere  of  the  confiscation  of  private  property, 
the  non-recognition  of  the  rights  of  ownership  and  busi- 
ness management,  or  the  annulment  of  law  ?     The  success 
and  permanency  of  business — yes,  its  very  life — is  de- 
pendent upon  the  stability  of  government.     With  refer- 
ence to   these   points,   my   own   confidence   is   perfectly 
secure  with  reference  to  the  nations  represented  here. 
But  in  these  questions  the  business  men  of  America  are 
very  deeply  interested. 

2.  What  are  to  be  the  relations  between  government 
and  business  in  the  respective  countries  ?  Will  the  various 
nations  in  their  reconstruction  efforts  stabilize  relations 
between  government  and  business  that  will  recognize  that 
commerce  is  the  greatest  of  all  interests,  and  will  their 
relations  be  based  on  such  a  statesmanlike  conception? 
What  will  the  attitude  of  the  various  governments  be 
toward  the  American  industry  and  commerce?     Will  it 
be  accorded  freedom  of  trade,  and  equal  privileges  and 


THE  INTERNATIONAL  TRADE  CONFERENCE          41 

opportunity,  or  will  it  be  threatened  with  restriction  of 
imports,  and  the  menace  of  government  control  or  mo- 
nopoly ? 

3.  One  of  the  methods  by  which  future  financial  co- 
operation between  America  and  Europe  can  be  realized 
is  by  having  our  people  invest  their  money  in  your  enter- 
prises, just  as  Europe  formerly  did  in  ours.    We  want  to 
put  our  treasures  with  yours  and  take  "pot-luck"  with 
your  people  in  realizing  success  with  our  enterprises. 
The  whole  of  American  industry  is  open  to  the  invest- 
ment of  the  world.     We  extend  complete  hospitality  to 
capital  from  every  nation.     I  submit  that  one  of  the 
surest  roads  to  complete  international  cooperation  is  full 
reciprocity  in  this  particular. 

4.  Nothing  is  further  from  our  thoughts  than  inter- 
ference or  dictation  in  the  affairs  of  Europe.     And  yet 
our  people  will  be  vitally  interested  to  know  with  regard 
to  the  particular  countries,  whether  they  propose  in  the 
future  to  lower  the  cost  of  production  through  standard- 
ization and  modern  methods,  what  are  the  prospects  for 
improved  relations  between  capital  and  labor,  and  what 
is  to  be  the  probable  policy  in  each  country  toward  the 
cultivation  of  foreign  markets,  the  purchasing  of  raw 
materials  and  the  establishment  and  promotion  of  new 
industries.    On  our  part,  we  want  you  to  see  our  country 
and  to  know  our  business  men,  that  we  may  know  your 
needs  and  may  learn  how  we  can  help  meet  them  most 
effectively.    We  want  you  to  know  our  needs  also.    We 
have  much  to  learn  from  you  and  we  hope  you  won't 
mind  us  asking  infinite  questions. 

Each  of  us,  gentlemen,  approaches  the  deliberations  of 
this  Conference  in  a  constructive  spirit.  We  are  most 
eager  that  out  of  this  Conference  will  grow  practical 
measures  enabling  us  to  cooperate  with  you,  to  extend 
all  necessary  credits,  and  to  work  with  you  in  solving 
the  problems  which  underlie  the  construction  of  civiliza- 
tion. 

A  story  is  told — perhaps  you  may  have  heard  it — a 
story  of  a  man  who  found  himself  in  the  depths  of  a 
deep  forest  thick  with  undergrowth,  difficult  of  penetra- 
tion. He  labored  and  struggled,  and  after  much  priva- 
tion and  hardship  and  starvation  finally  came  out  upon 
the  borders  of  a  broad  river;  and  on  the  opposite  bank 


42          THE  INTERNATIONAL  TRADE  CONFERENCE 

he  saw  a  beautiful  country  under  cultivation  with  run- 
ning waters  and  bright  sunshine,  and  happiness ;  but  be- 
tween him  and  that  country  lay  this  broad  river,  a  rapid- 
running  stream  with  whirlpools  in  it,  rapids,,  and,  above 
all,  what  seemed  to  him  the  most  impractical  proposition 
for  him  to  overcome :  jagged  rocks  around  which  the  cur- 
rent swirled  and  tore.  However,  he  did  not  hesitate,  but, 
gathering  up  his  remaining  strength,  he  plunged  into 
the  waters  to  reach  the  other  side.  It  seemed  as  though 
he  would  be  swept  away,  but  managing  to  catch  upon  the 
first  of  these  great  rocks  he  was  enabled  there  to  catch 
his  breath  and  regain  a  little  of  his  strength.  And  so 
he  progressed  until  finally,  though  practically  exhausted, 
he  got  upon  the  other  side  and  on  the  promised  land; 
and,  looking  back,  he  then  realized  that  many  of  the 
obstacles  which  he  had  overcome,  especially  those  last 
obstacles,  were  merely  the  stepping  stones  to  his  success. 

Gentlemen,  we  have  been  through  the  deep  and  dark 
forest  of  a  terrible  war  in  which  we  have  found  quag- 
mire, and  swamps  and  desert,  and  in  it  a  wild  beast 
which  has  not  only  destroyed  life,  but  torn  women  and 
children  and  men  asunder  and  taken  them  away  from 
our  midst,  and  yet,,  in  spite  of  it  all,  we  have  struggled 
out  through  the  forest  and  now  we  stand  upon  the  brink 
of  the  river  and  we  see  the  promised  land  before  us 
where  there  is  peace  and  prosperity,  and  happiness. 

Gentlemen,  the  problems  which  we  are  to  discuss  today 
are  our  rocks,  but  I  know,  and  you  know,  that  we  can 
overcome  them,  and  perhaps  when  we  attain  the  prom- 
ised land  we  shall  find,  after  all,  they  were  merely  step- 
ping stones  to  our  progress. 

Mr.  Bedford:  Now,  gentlemen,  I  am  going  to  call  on 
John  H.  Fahey,  chairman  of  the  Program  Committee,  to 
make  an  announcement  relative  to  the  method  under 
which  we  will  proceed  with  our  Conference. 


THE  INTERNATIONAL  TRADE  CONFERENCE          43 


Address  of  Mr.  John  PI.  Fahey. 

Mr.  Chairman  and  Gentlemen:  With  the  vast  task  that 
lies  before  us,  and  the  many  complications  which  we  con- 
front, and  the  necessity  of  overcoming  the  obstacles 
which  confront  us,  if  we  are  to  be  successful,  I  am  sure 
you  will  all  understand  the  necessity  of  the  plan  we  have 
here  for  this  series  of  group  committee  meetings  in  ad- 
vance of  the  general  public  session  of  the  Conference. 

For  many  weeks,,  suffering  under  the  disadvantage  of 
communication  by  cable  and  wireless  with  our  friends  on 
the  other  side,  we  have  been  trying  to  work  out  this  pro- 
gram of  committee  meetings  so  as  to  serve  the  purposes 
of  this  great  gathering  with  the  greatest  possible  advan- 
tage. Our  American  committees  have  been  under  the 
advice  of  our  Executive  Committee  and  Program  Com- 
mittee as  a  result  of  many  suggestions,  to  the  end  that 
they  may  be  truly  representative  of  each  of  the  great 
industries  of  the  country,  taking  up  the  subjects  under 
the  several  topic  committees;  and  now  we  have  laid  out, 
after  discussion  with  our  guests  from  the  other  side,  this 
series  of  meetings.  We  secured  from  the  printers  only 
this  morning  a  pamphlet  giving  the  personnel  of  the 
committees  and  the  hours  fixed  for  the  various  committee 
meetings.  These  pamphlets  have  been  distributed 
among  you.  You  will  observe  as  you  look  over 
the  pamphlets  that  we  have  included  the  com- 
plete personnel  of  all  the  distinguished  missions  from  the 
other  side,  and  likewise  of  our  own  corresponding  Ameri- 
can committees.  We  have  also  put  aside  separately,  on 
a  page  by  itself,  the  time-schedule  of  committee  meetings 
for  each  mission  on  each  of  the  separate  topics  to  be 
taken  up,  such  as  foodstuffs,  reconstruction  supplies,  pe- 
troleum, textiles,  shipping,  credit  and  finance,  and  the 
other  subjects  with  which  we  are  dealing.  So,,  by  refer- 
ence to  this  pamphlet,  every  committee  member  can  read- 
ily see  the  meeting  time  for  the  committees  on  which  he 


44          THE  INTERNATIONAL  TRADE  CONFERENCE 

is  serving.  In  like  manner,  please  understand,  each  of 
the  foreign  missions  has  a  definite  headquarters  in  the 
hotel  for  its  own  meetings.  For  instance,  the  meeting 
of  these  special  committees  in  each  case  on  a  given  sub- 
ject is  always  in  one  room.  For  example,  the  committee 
on  textiles  has  a  designated  headquarters  and  there  the 
several  committees  on  that  subject  will  meet  throughout 
the  Conferences. 

These  committee  meetings  will  be  executive  sessions. 
They  are  not  open,  public  sessions.  In  the  first  place,  you 
gentlemen  will  realize  from  the  business  standpoint  that 
it  is  not  wise,  has  not  been  wise  to  make  committees  that 
were  too  large  in  size  because  at  best  the  time  at  our  dis- 
posal for  the  discussion  of  these  most  important  subjects 
is  all  too  brief,  and  if  the  membership  of  these  commit- 
tees were  unduly  expanded  you  could  not  make  progress. 
Again,  you  cannot  invite  the  members  generally  if  you 
are  going  to  get  real  results  out  of  these  committee  meet- 
ings. However,  it  is  absolutely  essential  that  all  par- 
ticipating in  these  committee  meetings  should  feel  free 
from  any  restraint  to  discuss  very  fully  and  frankly 
whatever  is  in  their  minds.  Therefore  it  was  agreed  on 
all  sides  that  these  committee  meetings  should  be  execu- 
tive sessions ;  that  admission  to  them  would  be  by  creden- 
tials alone  of  those  who  have  been  appointed  as  members 
of  these  committees  and  it  is  impractical  to  change  the 
committee  or  to  add  to  their  membership  at  the  present 
time.  I  am  speaking  now  especially  of  the  American 
Committees.  If  it  were  within  our  power,  and  if  it  were 
a  practical  thing  to  do,  the  Executive  Committee  would 
have  been  glad  to  invite  scores  and  hundreds  for  these 
meetings,  because  of  the  advantage  that  would  come  to 
them,  but  as  business  men  you  all  appreciate  how  im- 
practical that  would  be.  Therefore,  admission  will  be 
by  credentials  and  each  of  you  gentlemen  on  these  com- 
mittees will  receive  a  credential  card  admitting  you  to 
these  committee  meetings.  It  would  be  well  for  you  to 
have  these  cards  on  hand  so  that  there  will  be  no  diffi- 
culty about  obtaining  admission. 


THE  INTERNATIONAL  TRADE  CONFERENCE          45 

It  is,  of  course,  necessary  that  the  press  and  the  public 
be  advised  as  to  the  progress  of  these  committee  meet- 
ings. Therefore,,  arrangements  have  been  made  so  that 
at  the  conclusion  of  each  session  a  brief  digest  of  the 
progress  made  can  be  prepared  and  issued  to  the  press 
under  the  supervision  of  the  Chairman  of  Vice-chairman 
of  the  foreign  committees  and  our  committees,  so  that  we 
will  all  be  thoroughly  posted  and  understand  the  progress 
being  made. 

Another  thing  to  be  provided  for  is  the  matter  of  reso- 
lutions, or  statements  to  come  in  to  the  general  confer- 
ence. A  resolutions  or  clearance  committee  will  be  ap- 
pointed representing  our  committees  and  representing 
the  committee  from  the  foreign  missions,  and  any  ex- 
pressions of  opinion  which  are  developed  in  your  separ- 
ate committees  can  be  prepared  and  sent  to  that  resolu- 
tion committee  for  consideration.  It  is  obviously  neces* 
sary  that  they  should  clear  through  such  a  committee  in 
order  that  there  will  not  be  a  duplication  of  expression, 
and  in  order  that  conflict  will  therefore  be  avoided. 
Those  resolutions  can  be  of  such  character  as  appeal  to 
you  men  as  being  necessary  to  this  occasion.  However, 
in  many  cases  it  is  clear  that  because  on  particular  sub- 
jects the  men  present  representing  American  interests 
represent  all  of  those  interests  in  the  United  States  and 
understand  what  the  conditions  are ;  and  your  committees 
in  turn  are  of  like  character;  that  whatever  understand- 
ings they  arrive  at  as  to  plans  which  may  be  formulated 
are,  generally  speaking,  of  particular  interest  to  the  in- 
dustry and  are  not  of  necessity  of  interest  to  the  entire 
gathering.  But  that  is  wholly  a  question  of  judgment, 
and  you  gentlemen  will  decide  for  yourselves  as  to  the 
wisest  course  in  dealing  with  these  resolutions. 

Let  me  say  in  conclusion  that  the  Program  Committee 
and  the  Executive  Committee  have  established  headquar- 
ters in  the  Rose  Room  at  the  rear  of  the  lobby  down 
stairs,  and  there  Mr.  Phelps,  the  Executive  Secretary  for 
the  Committee,  and  Mr.  Bedford  and  myself,  or  through 
that  headquarters,  will  be  constantly  available  to  any  of 
you  gentlemen  for  information  concerning  any  matter  or 


46          THE  INTERNATIONAL  TRADE  CONFERENCE 

matters  which  may  arise  in  connection  with  the  program, 
or  resolutions,  and  for  anything  that  may  add  to  your 
comfort  and  convenience  in  making  progress  with  this 
most  important  work. 

I  would  like  to  say  also  that  if  any  questions  should 
arise  among  you  gentlemen  as  to  the  machinery  of  the 
Committee's  work  or  as  to  methods  of  handling  the  af- 
fairs of  this  Convention  we  would  be  glad  to  answer  that 
to  the  best  of  our  ability. 

Mr.  Bedford:  Gentlemen,  it  seemed  wise,,  at  this  time, 
when  we  had  you  all  together,  that,,  in  order  to  facilitate 
the  work  of  one  of  our  most  important  committees  we 
should  ask  the  Chairman  of  that  committee  to  make  a 
statement  to  you  in  order  to  avoid  his  having  to  really 
repeat  it.  That,  of  course,  will  save,  not  only  the  time 
of  the  committees  getting  down  to  practical  matters,  but 
will  also  give  to  you  all  a  viewpoint  of  the  Chairman  of 
the  Committee  on  Finance  and  Credit.  I  take  great  pleas- 
ure on  calling  on  Mr.  James  S.  Alexander,  President  of 
the  National  Bank  of  Commerce  of  New  York,  the  Chair- 
man of  that  committee  who  will  now  address  you. 


Address  of  Mr.  James  S.  Alexander. 

I  want  to  extend  a  most  cordial  welcome  to  our  friends 
from  Europe  who  have  undergone  the  trouble  and  in- 
convenience of  so  long  a  journey  to  give  us  the  benefit  of 
expert  and  personal  viewpoints  on  conditions  in  their  re- 
spective nations.  We  have  assembled  a  strong  and  rep- 
resentative group  to  confer  with  them.  We  are  here  as 
a  committee  of  the  Chamber  of  Commerce  of  the  United 
States  to  discuss,  I  hope,  with  a  mutual  frankness  that 
will  preclude  any  reserve  on  either  side,  the  state  of  trade 
between  America  and  Europe. 

I  assume  we  are  all  agreed  that  there  is  serious  mal- 


THE  INTERNATIONAL  TRADE  CONFERENCE          47 

adjustment  in  the  machinery  of  international  commerce. 
I  think  we  can  all  agree,  in  general  terms,  as  to  the  fun- 
damental nature  of  the  maladjustment;  and  I  hope  we 
shall  be  able  to  define  and  analyze,  in  broad  terms  at 
least,  the  ways  and  means  available  for  promoting  and 
hastening  the  return  of  normal  trade  conditions. 

This  in  no  sense  means  that  we  are  going  to  attempt  to 
offer  to  those  engaged  in  foreign  trade  a  cure-all.  We 
cannot  provide,  nor  would  it  be  advisable  to  do  so  if  we 
could,  any  single  scheme  or  special  method  of  financing 
trade  between  Europe  and  America  which  did  not  relate 
itself  wholly  to  the  orderly  processes  of  commerce  as 
they  have  grown  and  will  grow  out  of  the  basic  inter- 
changes between  peoples.  World  trade  is  based  upon  ele- 
mentary principles  which  have  not  been  rendered  inap- 
plicable by  the  war.  We  must  remove  the  unusual  con- 
ditions which  prevent  these  principles  from  functioning. 
If  any  new  machinery  is  set  up  we  must  have  constantly 
in  mind  that  it  is  simply  a  temporary  scaffolding  which 
will  be  removed  when  the  main  structure  of  trade  has 
been  repaired  and  put  once  more  in  working  order. 

When  we  refer  to  normal  conditions  we  do  not  neces- 
sarily imply  a  return  to  a  pre-war  basis;  for  some 
changes  wrought  by  the  war  will  be  found  to  have  be- 
come an  intregal  part  of  the  new  order  of  things.  Even 
in  the  throes  of  war  the  world  has  continued  to  progress. 
Some  good  has  come  out  of  evil  times.  Therefore,  we 
must  look  to  the  present  and  to  the  future,  as  well  as  to 
the  past,  to  guide  us  in  our  analysis  of  the  vital  factors 
in  world  trade  as  we  shall  from  now  on  come  in  contact 
with  it. 

Normal  commerce  between  nations  means  the  free  in- 
terchange of  such  commodities  and  services  are  to  be  de- 
termined by  natural  factors  to  be  reciprocally  profitable 
and  beneficial.  What  is  normal  today  is  largely  what  can 
be  done  profitably  today,  or  what  cannot  be  left  undone 
today  without  prejudicing  what  will  be  required  to- 
morrow. We  face  things  as  they  are,  and  with  no  idea 
of  doing  business  on  the  basis  of  things  as  we  would 


48          THE  INTERNATIONAL  TRADE  CONFERENCE 

wish  them  to  be.  We  must  face  them  as  they  are,  aiming 
to  adapt  them  and  ourselves  to  a  practical  working  basis. 

Let  us  consider  briefly  some  basic  elements  in  the  sit- 
uation which  has  called  us  together.  During  the  war, 
and  since  the  armistice,  we  have  been  sending  to  Europe 
an  enormous  excess  of  exports.  In  the  ten  months  pre- 
ceding the  armistice,  so  far  as  the  published  fig- 
ures go,  our  exports  exceeded  our  imports  by  about 
$248,000,000  a  month.  Since  the  armistice  the  figures 
have  risen.  In  January  our  balance  was  $409,000,000, 
in  April  it  was  $442,000,,000,  in  June  it  rose  to  the  aston- 
ishing figure  of  $625,000,000.  Exports  in  that  month 
were  $918,000,000  and  imports  were  $293,000,000.  Our 
average  export  balance  for  the  first  eight  months  of  1919 
was  around  $400,000,000  a  month.  All  of  this  excess  and 
something  more,  has  been  in  our  trade  with  Europe. 
Thus,  in  April  we  sent  Europe  $500,000,000  worth  of 
goods  and  received  back  from  Europe  $43,000,000  worth 
of  goods,  a  balance  of  $457,000,000  where  our  balance 
with  the  whole  world  was  $442,000,000. 

When  the  situation  is  viewed  from  the  other  side,  even 
more  striking  figures  appear.  France  imported  over 
12,000,000,000  francs'  worth  of  goods  in  the  first  six 
months  of  1919  and  exported  only  a  little  over  2,000,000,- 
000  francs'  worth  of  goods,  leaving  her  an  adverse  bal- 
ance of  trade  of  nearly  10,000,000,000  francs.  Similar 
proportions  appear  in  the  export  and  import  figures  of 
Italy.  Great  Britain  has  had,  during  the  first  eight 
months  of  1919,  an  adverse  trade  balance  equivalent  to 
something  over  $2,000,000,000. 

Our  exports  in  Europe  have  changed  in  character 
radically  since  1913.  Before  the  war  we  sent  Europe 
largely  crude  food  stuffs  and  raw  materials.  Today  we 
are  sending  Europe  very  largely  food  stuffs  partly  or 
wholly  manufactured,  and  finished  manufactures.  In 
other  words,  we  have  been,  since  the  armistice,  sending 
Europe  chiefly  goods  for  immediate  consumption  rather 
than  those  things  which  she  could  use  setting  her  indus- 
try going. 


THE  INTERNATIONAL  TRADE  CONFERENCE          49 

It  is  axiomatic  that  what  is  bought  must  be  paid  for 
and  that  nations  engaged  in  foreign  trade  in  the  large 
run  pay  for  imports  by  exports.  The  existing  unpaid  and 
unbalanced  state  of  trade  between  America  and  Europe 
has  been  made  possible  by  credits  granted  by  the  United 
States  Government  to  the  Governments  of  Europe.  These 
credits  have  largely  ceased  to  be  available  for  the  sup- 
port of  the  export  trade,  and  our  exports  are  now  going 
to  Europe  largely  on  open  account.  There  has  come,  as  a 
consequence,  a  dramatic  break  in  virtually  all  the  Euro- 
pean exchange  rates,  and  the  foreign  exchange  markets 
are  badly  demoralized.  It  is  recognized  on  the  part  of  all 
of  us  that  in  the  absence  of  special  emergency  measures 
the  exchange  rates  will  continue  to  fall  until  American 
exports  to  Europe  are  so  checked  that  imports  will  pay 
for  them. 

In  addition  to  paying  for  her  excess  of  imports  over 
exports  Europe  has  the  problems  of  meeting  interest  pay- 
ments in  the  United  States,  and  the  problem  of  paying 
maturing  capital  obligations.  Many  of  the  countries  of 
Europe  are  heavily  burdened  with  shipping  cargoes  in 
addition.  Practically  all  these  "invisible  items"  in  the 
international  balance  of  indebtedness,  freights,  interest 
payments,  banking  commissions,  travelers'  expenses  and 
the  like  have  been  altered  to  Europe's  disadvantage  in  the 
last  five  years. 

The  pressure  on  the  exchanges  is  very  heavy  and  the 
obstacles  in  the  way  of  getting  needed  exports  to  Europe 
are  correspondingly  great,  and  it  is  this  situation  with 
which  we  have  to  deal. 

The  exports  and  imports  of  one  kind  or  another  in  the 
commerce  of  the  world  do  not,  from  the  point  of  view  of 
any  one  nation,  give  evidence  of  trade, — of  exchange  of 
commodities  on  a  reciprocal  and  balanced  basis.  Tnere- 
f ore  I  think  we  can  be  specific  in  our  agreement  that  the 
chief  abnormal  international  trade  factor  is  this  alarm- 
ingly unbalanced  interchange  of  trade — that  the  balance 
of  trade  is  too  favorable  to  the  United  States  and  too  ad- 
verse to  Europe  for  the  best  interest  of  both,,  and  that 


50          THE  INTERNATIONAL  TRADE  CONFERENCE 

the  correction  of  the  exchange  situation  resulting  from 
this  one-sided  trade  balance  will  find  its  natural  and 
permanent  solution  only  through  a  reduction  of  our  ex- 
ports or  an  increase  of  our  imports  until  a  point  of  ap- 
proximate equilibrium  is  reached. 

It  is  a  difficult  task.  What  are  the  elements  involved 
in  our  attempt  to  meet  it?  First  of  all,  regarding  the 
official  phase  of  the  situation — that  is,  the  cessation  of 
United  States  Government  loans  to  European  nations- 
Federal  Reserve  officials  have  said  that  "Europe's  needs 
should  now  be  supplied  through  the  private  initiative  of 
foreign  manufactures,  merchants,  and  bankers  dealing 
with  similar  American  groups  and  not  through  the  con- 
certed efforts  of  the  governments  concerned — that  from 
the  viewpoint  of  the  United  States,  the  ability  of  our 
government  after  completing  its  own  war  financing  to 
assist  foreign  governments  without  vast  inflation  and 
consequent  danger  to  our  own  credit  is  problematic." 

I  have  quoted  this  passage  from  governmental  au- 
thority because  it  contains  a  definite  suggestion — that  is, 
that  the  time  has  come  to  turn  away  from  outright  gov- 
ernment financing  of  international  commerce,  and  to  re- 
sume once  more  a  course  of  private  enterprise  and  initi- 
ative; to  turn  as  rapidly  as  possible  from  an  abnormal 
basis  back  to  the  normal  basis  of  peace. 

Practical  measures  are  well  advanced  in  this  country 
to  facilitate  and  expedite  this  transition,  but  probably  no 
comprehensible  plans  will  be  definitely  formulated  until 
the  Treaty  of  Peace  is  signed.  To  mention  only  one  of 
the  measures  under  discussion,  the  Edge  Export  Finance 
Bill,  before  Congress,  aims,  in  essence,  to  make  possible 
the  organization,  under  Federal  incorporation  of  the  in- 
strumentalities for  a  larger  volume  of  international  com- 
mercial transactions  on  a  credit  basis.  As  explained  by 
Senator  Edge,  the  American  manufacturer  or  exporter 
will  sell  his  goods  to  European  buyers  and  will  accept 
collateral  satisfactory  to  an  American  corporation  or- 
ganized under  the  Edge  bill ;  against  this  collateral  the 
corporation  will  issue  debentures  to  be  sold  to  investors, 


THE  INTERNATIONAL  TRADE  CONFERENCE          51 

and  by  this  process  the  American  manufacturer  or  ex- 
porter will  be  paid. 

The  general  outlines  thus  laid  down  seem  to  represent 
one  form  of  coordination,  of  assisting  business  facilities 
to  handle  present  international  commercial  needs  along 
lines  that  will  hasten  the  return  of  business  ultimately  to 
a  basis  that  will  require  no  special  machinery.  I  take  it 
that  is  just  what  business  men  on  both  sides  of  the  water 
are  really  after  today. 

From  the  point  of  view  of  France  this  thought  has 
been  set  forth  recently  from  Baron  de  Neuflize,,  whose 
words  have  been  widely  read  throughout  the  United 
States  and  accepted  as  presenting  a  sound  view  of  the 
situation.  He  has  said : 


"Now,  the  first  thing  for  taxation  is  not  taxes.  Our 
Government  problem  is  to  get  taxable  income.  Taxing 
it  afterwards  is  easy,  provided  the  political  situation  is 
straightened  out,  and  this,  as  I  have  shown  you,  will  hap- 
pen next  fall. 

"Therefore,  the  real  question  comes  to  this :  Will  there 
be  a  big  enough  taxable  income  in  France,  or  in  other 
words,  are  French  people  working  ?" 

Elsewhere  he  says: 

"France  does  not  want  charity  and  does  not  ask  for  it. 
It  is  a  business  proposition.  It  is  as  such  that  we  ask 
the  American  people  to  look  into  it." 

It  is  a  business  proposition,  and  we  should  aim  here  to 
facilitate  and  expedite  the  re-establishment  of  our  busi- 
ness with  the  nations  of  Europe  on  a  business  basis. 
That  basis  will  be  best  for  the  United  States,  and  it  will 
be  best  for  every  country  in  Europe.  We  do  not  need 
to  say  to  our  guests  that  there  is  unlimited  good-will  in 
America  toward  England,  France,  Belgium  and  Italy — 
just  as  large  and  warm  a  heart  beats  in  this  country  as 
during  the  war;  but  with  the  return  of  peace  the  minds 
of  the  people  have  turned  again  to  the  normal  pursuits 


52          THE  INTERNATIONAL  TRADE  CONFERENCE 

of  business  and  industry  which  were  completely  inter- 
rupted during  war  times.  We  are  trying  to  put  our  own 
house  in  order. 

But  we  know  our  friends  from  Europe  well  enough  to 
believe  that  they  very  generally  recognize  the  fact  that  it 
is  best  for  them  to  get  money  on  a  basis  that  is  determin- 
able  and  permanent.  Our  good  will  insures  our  making 
every  possible  effort  toward  reaching  a  speedy  solution 
of  present  uncertainties.  But  the  solution  itself  must 
rest,  not  upon  a  basis  of  settlement,  but  rather  upon  a 
foundation  of  economic  facts,  of  common  sense,  and 
sound  commercial  practice. 

The  nations  of  Europe  want  credit,  but  they  are  not 
seeking  primarily  credit  for  today,  but  rather  a  funda- 
mental credit  understanding,  a  system  of  credit  which 
they  can  trade  upon  and  make  commitments  upon.  They 
want  to  know  they  can  count  on  help  based  not  upon  a 
general  impulse  of  the  moment,  but  upon  the  more  per- 
manent, if  not  impersonal,  desire  of  men  to  trade  with 
one  another  on  the  basis  of  mutual  profit  and  satisfac- 
tion. This  is  a  staff  they  can  lean  upon.  Any  commer- 
cial arrangement  grounded  solely  upon  the  uncommercial 
and  shifting  element  of  good  will  and  friendly  sentiment, 
no  matter  how  firm  and  true  that  sentiment  may  be,  will 
in  the  end  prove  unsatisfactory. 

This  brings  our  attention  to  another  cardinal  element 
in  the  solution  of  our  problem.  It  is  an  element  which 
I  can  touch  upon  frankly  without  appearing  to  be  offer- 
ing advice  to  our  good  friends  from  overseas;  for  this 
lesson  is  of  as  vital  importance  to  America  at  this  mo- 
ment as  to  any  nation  in  the  world.  I  refer  to  the  neces- 
sity of  the  greatest  possible  number  of  people  doing  a 
day's  work  and  of  the  greatest  possible  conservation  of 
the  results  of  that  work.  The  motto  "work  and  save" 
represents  in  every  sense  a  national  necessity  with  us. 

The  Federal  Reserve  Board  has  declared  that  the 
whole  situation  is  one  that  can  be  met  only  if  the  neces- 
sity of  working  and  saving  is  "taken  to  heart  by  every 
class  in  the  nation  and  made  its  guiding  principle  until 


THE  INTERNATIONAL  TRADE  CONFERENCE         53 

the  trying  conditions  left  by  the  war  are  finally  sur- 
mounted." This  doctrine,  enunciated  for  the  people  of 
the  United  States  by  the  most  important  official  financial 
body  in  the  nation,  may  well  be  repeated  to  the  people  of 
the  whole  world.  It  is  a  thought  that  will  give  us  sound 
guidance,  for  in  a  sense  never  before  so  universally  ap- 
plicable, industry  and  thrift  are  in  this  aftermath  of 
war's  destruction,  essential  not  only  to  the  happiness,  but 
even  to  the  very  existence  of  the  human  race.  Never  was 
an  economic  proposition  more  simple  and  self-evident. 

That  this  view  is  officially  shared  abroad  has  been 
manifested  in  many  ways.  Our  government  officials  em- 
phasize particularly  the  words  of  the  British  Chancellor 
of  the  Exchequer  who,  in  presenting  a  recent  budget, 
said: 

"The  deposits  at  the  joint-stock  banks  have  more  than 
doubled.  The  position  of  these  banks,  judged  by  every 
approved  criterion  of  sound  banking,  is  stronger  than  it 
ever  was  before,  but  the  securities — British  Govern- 
ment securities  standing  behind  the  deposits,  standing  be- 
hind the  legal-tender  money — represent  to  a  large  extent 
not  existing  wealth,  but  wealth  consumed  in  the  oper- 
ations of  the  war,  which  it  must  be  our  business  to  re- 
place out  of  the  exertions  of  the  present.  Both  are  drafts 
on  future  labor,  on  the  future  creation  of  wealth." 


This  doctrine  of  thrift  and  industry  is  applicable,  I 
think  we  may  all  agree,  equally  to  conditions  in  all  the 
nations  engaged  in  the  war;  and  the  encouragement  of 
its  practical  application  is  the  primary  step  in  any  pro- 
gram of  reconstruction.  We  may  as  well  face  the  fact 
that  the  majority  of  our  loans  to  the  nations  of  Europe 
are  secured  at  the  present  time  solely  by  the  probability 
of  future  productive  work.  The  people  of  Europe  can 
repay  those  loans  made  to  them  by  the  people  of  America 
only  by  producing  raw  materials  and  manufactured 
articles,,  by  saving,  by  sound  policies  of  taxation.  The 
same  policies  must  and  will  be  adopted  in  the  United 
States.  But  the  world  situation  cannot  be  helped  one 
iota  by  all  the  planning  and  discussion  and  clear  think- 


54          THE  INTERNATIONAL  TRADE  CONFERENCE 

ing  of  the  combined  bankers  and  business  men  of  the 
world  unless  all  the  people  of  the  world  return  to  their 
healthy  and  normal  tasks  and  begin  to  do  a  day's  work. 
We  must  stop  leaning  on  our  Government  and  depend 
upon  ourselves. 

I  would  repeat  that  the  solution  of  the  problems  we  are 
here  to  discuss  seems  to  demand  as  a  chief  element  the 
maximum  of  industry  and  thrift  within  the  nations;  it 
calls  for  the  restoration  of  a  greater  degree  of  equilibrium 
in  the  commercial  interchange  between  the  United  States 
and  the  countries  of  Europe;  the  cessation  of  our  gov- 
ernment financing  for  foreign  purchases  here;  the  en- 
couragement of  private  enterprise  and  initiative  in  place 
of  government  assistance,  and  the  provision  of  a  larger 
measure  of  long-time  credit  to  finance  the  foreign  pur- 
chases of  American  goods  until  such  time  as  Europe 
can  pay  for  what  she  buys  approximately  by  what  she 
sends  us. 

These  are,  as  I  understand  them,  the  raw  materials  for 
us  to  work  upon  here.  If  we  can  coordinate  these  ele- 
ments and  arrive  at  a  common  understanding  as  to  the 
bearing  of  each  upon  the  problem  of  foreign  trade  and 
international  credit,  I  believe  we  shall  have  materially 
advanced  the  discussion  of  this  important  phase  of  the 
present  economic  situation.  I  hope  this  understanding 
will  serve  as  a  basis  for  definite  practical  steps  in  the 
months  to  follow. 

Mr.  Bedford:  I  wish  to  thank  Mr.  Alexander  for  this 
very  sound  and  admirable  exposition  of  the  proposition 
before  us. 

I  am  reminded  of  one  of  the  great  crises  in  our  own 
country  and  the  famous  words  with  which  it  was  met : 

"The  way  to  resume  is  to  resume." 

The  way  to  establish  normal  relations  is  to  establish 
them;  and  it  seems  to  me  we  can  safetly  take  for  our 
text  that  what  we  want  to  do  now  is  to  do  the  sound  and 
natural  thing,  and  to  that  end  we  will  address  ourselves. 


International  Trade  Conference 


First  General  Meeting. 

The  first  open  session  of  the  Conference  took  place  at 
Young's  Pier,  at  8.15  o'clock,  Wednesday  evening,  Octo- 
ber 22,,  with  some  3,000  members  of  the  Chamber  of 
Commerce  of  the  United  States  present,  coming  from  all 
sections  of  the  country,  foreign  commissions  and  invited 
guests. 

The  Conference  was  formally  opened  by  Mr.  Alfred  C. 
Bedford,  chairman  of  the  Executive  Committee,  who 
spoke  as  follows : 

Ladies  and  Gentlemen:  This  is  the  first  public  ses- 
sion of  this  International  Trade  Conference  to  which  you 
have  been  invited.  During  the  week,  beginning  with 
Monday,  there  have  been  in  conference  here  with  the  dis- 
tinguished delegates  from  abroad  committees  represent- 
ing some  of  our  most  distinguished  business  men  and 
bankers  who  have  been  going  over  with  these  gentlemen 
from  the  other  side  many  of  the  most  important  ques- 
tions in  which  they  and  you  are  all  interested.  These 
committees  were  as  follows:  The  Committee  on  Credit 
and  Finance,  the  Committee  on  Chemicals,  the  Com- 
mittee on  Coal,  the  Committee  on  Foodstuffs,  the  Com- 
mittee on  Metals,  the  Committee  on  Petroleum,  the  Com- 
mittee on  Textiles,  the  Committee  on  Reconstruction  Sup- 
plies, the  Committee  on  Shipping,  and  the  Committee  on 
Permanent  Organization.  These  committees  through 
their  chairman  will  make  reports  to  the  Conference  be- 
ginning with  the  session  on  Thursday,  and  throughout 
the  session  of  Friday. 

When  I  was  asked  to  make  a  few  brief  remarks  at  the 
opening  of  this  Conference,  I  thought  that  possibly  out 


56          THE  INTERNATIONAL  TRADE  CONFERENCE 

of  compliment  to  some  of  our  friends  from  abroad,  who 
perhaps  are  not  as  familiar  with  the  English  language 
as  they  are  with  the  French  language,,  that  I  might  try 
to  make  it  possible  for  them  to  understand  the  few  words 
I  may  have  to  say  by  saying  them  in  French,  but  one  of 
my  associates  reminded  me  of  the  sign  which  they  put  up 
in  Italy  to  this  effect:  "Speak  English.  We  do  not  un- 
derstand college  French."  So  that,  while  my  good  friend, 
Mr.  Hankar,  chairman  of  the  Belgian  delegation,  ex- 
pressed the  wish  that  some  addresses  might  be  in  French, 
I  have  given  him  my  French  speech,  and  I  will  give  you 
the  English  one  so  that  he  can  follow  it. 

It  is  with  peculiar  pleasure  that,  as  an  American  busi- 
ness man  and  as  an  officer  of  the  Chamber  of  Commerce 
of  the  United  States,  I  welcome  to  this  Conference  the 
distinguished  business  men  who  come  to  us  from  over- 
seas. As  President  Wilson  so  aptly  said  at  Turin  last 
winter :  "The  men  who  do  the  business  of  the  world  now 
shape  the  destinies  of  the  world,"  and  I  think  it  may 
be  truly  added  that  upon  the  shoulders  of  the  men  repre- 
sented in  this  Conference  more  than  upon  those  of  any 
other  group,  will  rest  the  welfare,  certainly  of  the  United 
States  and  Europe,  for  the  next  quarter  of  a  century. 

The  committee  meetings  of  the  past  few  days  have 
evinced  very  clearly  the  fact  that  the  members  of  this 
conference  have  approached  their  deliberations  here  with 
a  consciousness  of  unusual  responsibility.  And  now  as 
we  enter  upon  the  larger  and  more  definite  of  our  discus- 
sions it  is  appropriate  to  express  the  thought  that  we  are 
met  here  for  purposes  affecting  the  very  foundations  of 
our  civilization. 

This  may  properly  be  called  an  International  Congress 
of  Business — a  conference,  in  conception  and  potentiality 
probably  without  precedent.  We  come  together  at  a  mo- 
ment of  great  change.  No  man  can  tell  what  the  morrow 
may  bring  forth,  but  it  is  certain  that  there  is  a  search- 
ing of  men's  hearts  going  on  throughout  the  world. 
Every  institution  and  every  relationship  of  our  civiliza- 


THE  INTERNATIONAL  TRADE  CONFERENCE          57 

tion  is  being  subjected  to  the  acid  tes'/  of  a  new  point  of 
view. 

Some  of  the  early  economists  u^ed  to  teach  that  a 
nation  grew  wealthy  in  proportion  to  the  difference  be- 
tween the  amount  of  goods  it  sold  to  other  nations  and 
the  amount  it  purchased  from  them.  In  other  words,  the 
size  of  the  export  "balance  of  trade"  was  the  measuring 
rod  of  national  progress.  Later,  Adam  Smith  and  those 
who  followed  him  taught  that  a  nation  must  not  only  sell 
to  the  world,  but  that  it  must  buy  from  the  world,  and 
that  the  ideal  situation  was  not  represented  by  a  huge 
"balance  of  trade,"  but  by  a  volume  of  trade  at  a  vir- 
tual equilibrium  between  what  was  sold  and  what  was 
bought. 

This  war  has  taken  us  a  step  farther  in  the  develop- 
ment of  our  thoughts.  We  now  realize  that  it  is  not  only 
necessary  to  sell  to  the  nations  of  the  world  and  to  buy 
from  the  nations  of  the  world,  but  that  we  have  a  direct 
interest  in  actually  promoting  on  its  own  account  the  pros- 
perity of  the  world,  not  alone  of  that  part  of  it  com- 
prised within  our  national  boundary  lines,  but  quite  as 
much  the  prosperity  of  lands  remote  from  our  own. 

In  a  peculiar  sense  is  this  true  of  our  immediate  inter- 
est in  the  reconstruction  and  revival  of  the  economic 
health  and  prosperity  of  those  countries  which  have  been 
our  Allies  during  the  war.  In  the  course  of  the  war  the 
United  States  came  to  see  that  the  salvation  of  its  own 
life  and  independence  lay  in  going  with  force  of  arms  to 
the  aid  of  England,  France,  Italy  and  Belgium.  Had 
those  countries  been  engulfed  in  defeat,  the  disaster 
would  have  soon  overwhelmed  us  and  civilization  would 
have  been  put  back  many  centuries.  When  we  did  go  to 
the  aid  of  those  who  were  fighting  the  battle  of  liberty 
and  security,  we  went  whole-heartedly  and  with  but  one 
thought  in  mind,  and  that  was  that  the  cause  into  which 
we  had  thrown  ourselves  must  triumph  beyond  the  pos- 
sibility of  question. 

At  this  moment,  although  Germany  has  been  van- 
quished, civilization  is  still  threatened  by  insidious  forces,, 


58          THE  INTERNATIONAL  TRADE  CONFERENCE 

not  from  without  but  from  within.  Strange  doctrines  are 
abroad.  The  serious  deprivations  of  war  have  given  rise 
to  counsels  of  despair.  The  reaction  from  the  spirit  of 
unselfishness  and  comradeship  of  war  has  been  toward 
suspicion  and  expectations  that  cannot  be  fulfilled.  We 
find  people  who  speak  as  if  the  destruction  of  our  whole 
moral  and  social  fabric  were  impending.  Not  for  a  mo- 
ment do  I  sympathize  with  such  pessimism,  and  yet 
Cardinal  Mercier,  before  the  Chamber  of  Commerce  in 
New  York  a  few  days  ago,  spoke  significantly  of  the  sin- 
ister and  destructive  ideas  which  were  falling  on  fruitful 
soil  in  his  own  native  Belgium.  The  same  condition  pre- 
vails throughout  Europe  and  evidences  of  its  inroads  are 
not  lacking  in  the  United  States.  The  nations  of  the 
world  face  a  common  foe — an  enemy  within  us,  a  para- 
site born  of  the  war,  and  the  destruction  of  which  de- 
pends upon  our  prompt  resuscitation  from  the  devasta- 
tion of  war. 

Upon  the  business  men  of  the  world  rests  the  duty  to 
see  to  it  that  these  prophecies  of  despair  shall  not  be 
verified,  and  that  out  of  the  waste  and  destruction  of  war 
there  is  reared  a  new  world  and  a  new  prosperity  which 
shall  insure  for  all  time  the  welfare  and  happiness  of 
mankind.  Upon  these  business  men  rests  the  opportu- 
nity and  the  obligation  to  pursue  a  policy  of  such  sym- 
pathy and  enlightenment  that  this  new  cancer  in  our 
social  and  business  life  shall  have  no  opportunity  to  grow. 

To  accomplish  this  reconstruction  of  the  world  the 
United  States  must  cooperate  primarily  with  these  key 
nations,  whose  representatives  meet  here.  Just  as  in  war 
the  protection  of  these  nations  represented  the  safety  of 
the  world,  so  today  their  revivification  and  prosperity 
represent  the  salvation  of  the  world  and  the  salvation  of 
civilization. 

The  American  people  have  a  direct,,  and,  if  you  please, 
selfish  interest  in  bringing  about  the  promptest  possible 
return  to  prosperity  of  England,  France,  Italy  and 
Belgium.  There  is,  however,  no  desire  on  our  part  to  be 
other  than  helpful  and  no  wish  I  am  sure  to  undertake, 


THE  INTERNATIONAL  TRADE  CONFERENCE          59 

but  rather  to  refrain  from  participation  in  the  shaping  of 
policies  in  matters  purely  European. 

This  return  of  prosperity  can  be  accomplished — 

First  of  all,  by  cooperation  between  our  business  men. 
The  petty  jealousies,  the  short-sighted  efforts  to  obtain 
temporary  advantage  through  questionable  methods — 
anything  else  than  whole-hearted  mutual  confidence  and 
cooperation — cannot  endure  against  the  obligations  of 
the  new  day.  We  will  be  competitors,  but  let  us  be 
friendly  competitors. 

Second,  by  a  return  by  our  people  to  a  realization  of 
the  dignity  of  labor.  No  nation  that  puts  a  minimum  of 
its  strength  into  labor  can  hope  to  compete  with  another 
that  works  at  full  blast.  "To  live,  the  world  must  pro- 
duce more  and  talk  less." 

The  spread  of  electricity  and  improvements  in  com- 
munication, the  development  of  transportation,  the  open- 
ing up  of  opportunities  for  investment  in  every  part  of 
the  world,  the  activities  of  security  markets  in  all  the 
great  commercial  capitals — all  are  tending  to  make 
trade  less  and  less  regardful  of  national  lines.  Just  as 
labor  is  coming  to  see  that  the  permanent  welfare  of 
labor  in  one  country  lifts  the  lot  of  the  working  man 
throughout  the  world,  so  business  men  are  seeing  that  the 
development  of  their  own  interests  cannot  be  confined 
within  mere  geographical  limitations. 

This  conference,  if  it  accomplishes  nothing  else,  will, 
I  hope,  result  in  giving  to  the  business  men  of  the  great 
nations  here  represented  more  than  ever  before  a  world 
point  of  view.  A  realization  that  business  in  the  future 
will  call  for  the  highest  standard  of  efficiency  and  cooper- 
ation, will  make  for  the  destruction  of  ignorant  selfish- 
ness and  merely  personal  profit,  and  will  be  recognized 
to  have  succeeded  just  to  the  extent  that  it  makes  men  of 
all  nations  realize  their  interdependence  one  upon  the 
other,  and  acts  upon  the  faith  that  an  intelligent  self- 
interest  commands  upon  the  part  of  each  of  us  an  active 
regard  for  the  happiness  and  welfare  of  every  land  on 
this  small  earth. 


60          THE  INTERNATIONAL  TRADE  CONFERENCE 

At  a  critical  moment  of  the  war  M.  Clemenceau  said 
that  victory  would  lie  with  the  side  which  held  out  the 
last  quarter  of  an  hour.  But  at  the  moment  when  the 
armistice  was  signed  M.  Cheradam,  another  Frenchman, 
very  aptly  remarked :  "The  last  quarter  of  an  hour  is  be- 
ginning now." 

The  end  of  the  war  has  been  only  the  beginning  of 
strife,  and  we  must  face  the  problems  as  they  come  with 
steadfastness,  courage,  and  with  an  open  mind  in  the 
realization  that  only  those  nations  can  remain  or  become 
great  who  are  willing  to  face  and  solve  those  problems 
and  who  do  not  hesitate  to  endure  in  order  that  final  suc- 
cess may  be  achieved. 

Surely,  here  is  a  call  to  all  of  us  to  determine  to  make 
this  gathering  worth  while.  Its  basic  note  is  patriotic 
love,  each  for  his  own  country ;  that  love  which  inspired 
us  all  to  give  of  our  uttermost  during  the  war,  and  which 
shall  find  its  highest  and  best  expression  in  struggling 
to  realize  the  coming  of  the  day  when  it  really  becomes 
true  that — 

"The  war  drum  throbs  no  longer  and  the  battle  flags  are  furled, 
In  the  Parliament  of  Men,  the  Federation  of  the  World." 

We  welcome  you,  and  we  look  forward  to  united  efforts 
growing  out  of  this  conference  which  will  promote  the 
prompt  reconstruction  of  economic  life  in  Europe  and  the 
establishment  of  our  civilization  upon  such  foundations 
of  trust  and  good  will  among  nations  as  can  never  be 
shattered. 


Rules  for  the  Conference. 
The  following  rules  were  adopted: 

1.  Resolutions  shall  be  received  only  from  the  duly 
constituted  committees  of  this  Conference  and  must  be 
presented  without  reading  or  argument  to  the  presiding 
officer  or  secretary  of  the  general  meeting  on  or  before 
Thursday,  October  23d,  before  11.00  A.  M. 


THE  INTERNATIONAL  TRADE  CONFERENCE          61 

2.  There  shall  be  a  Committee  on  Resolutions,  to  which 
all  resolutions  shall  be  referred,  to  be  composed  as  fol- 
lows :    The  chairman  and  secretary  shall  be  appointed  by 
the  presiding  officer  and  shall  be  ex-officio  members  of  the 
committee.     In  addition,  there  shall  be  two  members 
chosen  by  each  of  the  four  visiting  missions  and  eight 
Americans  chosen  by  the  presiding  officer.    The  commit- 
tee is  hereby  empowered  to  originate  resolutions,  to  re- 
vise resolutions  that  have  been  referred  to  it,  and  to 
report  to  the  public  sessions  prior  to  the  close  of  the 
Conference  such  resolutions  as,  in  their  opinion,  should 
be  adopted. 

3.  In  debate  on  resolutions  reported  or  other  subjects 
each  speaker  shall  be  limited  to  ten  minutes  and  no 
speaker  shall  speak  more  than  once  on  the  same  motion 
except  by  unanimous  consent. 

4.  Except  as  otherwise  specified  in  the  foregoing  para- 
graphs, Robert's  Rules  of  Order  shall  govern  the  pro- 
ceedings. 

Resolutions  Committee. 

The  Committee  on  Resolutions  was  announced,  as  fol- 
lows: Joseph  H.  Defrees,  chairman;  Elliot  H.  Goodwin, 
secretary. 

British  Mission:  Sir  Arthur  Shirley  Benn  and  Sir 
James  Hope  Simpson. 

French  Mission:  M.  Eugene  Schneider  and  M.  A.  Tir- 
man. 

Belgian  Mission :  M.  Florimond  Hankar  and  M.  Canon- 
Legrand. 

Italian  Mission:  Dr.  Ferdinand  Quartieri  and  Grand 
Officer  Professor  Bernardo  Attolico. 

United  States:  Dr.  Lewis  E.  Pierson,  Mr.  George  Ed 
Smith,  Mr.  R.  Goodwyn  Rhett,  Mr.  James  S.  Alexander, 
Mr.  John  H.  Fahey,  Mr.  John  Bassett  Moore,  Mr.  E.  A. 
S.  Clarke,  and  Mr.  Willis  H.  Booth. 


62          THE  INTERNATIONAL  TRADE  CONFERENCE 

Resolutions. 

The  following  resolutions,  reported  by  the  committee, 
were  adopted: 

SALUTATIONS  TO  GOVERNMENT  HEADS. 

The  International  Trade  Conference,  composed  of  dele- 
gates from  Belgium,  France,  Great  Britain,  Italy  and  the 
United  States,  begs  leave  to  request  the  president  of  the 
Conference  to  convey  to  the  heads  of  the  respective  gov- 
ernments respectful  salutations  and  best  wishes  of  the 
members  of  the  Conference  collectively  and  individually 
and  to  assure  them  of  the  deep  interest  of  the  Conference 
in  all  that  concerns  the  well-being  and  prosperity  of  the 
respective  governments  and  their  peoples. 

WITH  REFERENCE  TO  PRESIDENT  WILSON. 

The  International  Trade  Conference  meets  at  this  criti- 
cal moment  of  the  world's  history  to  consider  measures 
for  promoting  the  co-operative  effort  of  the  United  States, 
Great  Britain,  France,  Italy  and  Belgium  in  reconstruct- 
ing the  trade  of  the  whole  world. 

The  function  of  trade  in  this  process  of  reconstruction 
has  been  expressed  by  no  one  with  greater  aptness  than 
by  the  President  of  the  United  States  in  his  speech  at 
Turin,  wherein  he  said:  'The  future  destiny  of  the 
world  rests  in  the  hands  of  those  who  conduct  the  com- 
merce of  the  world."  When  this  Conference  was  pro- 
jected it  was  confidently  expected  that  President  Wilson 
would  be  with  us  at  one  of  our  sessions  to  develop  fur- 
ther that  thought,  and  also  to  express  the  interest  and 
expectancy  with  which  we  know  he  viewed  the  coming 
together  of  this  notable  gathering.  We  are  also  aware 
of  the  keen  concern  felt  by  the  President  to  the  end  that 
everything  possible  shall  be  done  to  promote  good-will 
and  co-operation  particularly  among  those  nations  which 
have  stood  side  by  side  in  war  in  the  cause  of  civilization. 

Those  in  attendance  here — whether  from  overseas  or 
from  the  various  parts  of  our  country — have  learned  with 
keenest  regret  of  the  President's  illness.  We  have  fol- 


THE  INTERNATIONAL  TRADE  CONFERENCE          63 

lowed  the  reports  from  his  sick  room  with  hope  daily 
renewed  that  each  bulletin  would  record  steady  and 
definite  progress  toward  recovery. 

It  is  accordingly  the  desire  of  this  Conference  as  its 
opening  official  act  that  there  shall  be  recorded  the  ex- 
treme disappointment  of  the  International  Trade  Confer- 
ence that  President  Wilson  cannot  be  with  us  on  this 
occasion,  and  our  profound  hope  and  prayer  that  at  the 
earliest  possible  moment  he  may  be  restored  to  complete 
health  and  comfort,  equipped  with  renewed  vigor  to  pro- 
mote the  cause  of  international  good-will. 

REGARDING  THE  DEATH  OF  COUNT  Di  CELLERE. 

The  International  Trade  Conference  desires  to  record 
an  expression  of  the  profound  sorrow  with  which  its 
members,  on  the  eve  of  the  opening  of  the  Conference, 
learned  of  the  sudden  death  in  Washington  on  Monday 
evening,  October  20,  of  Count  Macchi  di  Cellere,  the 
Italian  Ambassador  to  the  United  States. 

Uniting  with  ability  of  a  high  order  an  unusual  training 
and  experience,  Count  di  Cellere  received  his  appointment 
as  Ambassador  to  the  United  States  as  the  well  deserved 
reward  of  a  distinguished  career  in  his  country's  diplo- 
matic service.  His  services  at  Washington,  covering  a 
period  of  great  responsibility,  were  as  useful  as  they  were 
important,  and  materially  contributed  to  the  maintenance 
of  that  cordial  friendship  which  has  so  long  and  so  hap- 
pily characterized  the  relations  between  the  two  coun- 
tries. Respected  as  an  official  and  beloved  as  a  man,  his 
untimely  decease  is  mourned  throughout  the  United 
States. 

To  the  members  of  the  Italian  Mission  in  attendance 
at  the  Conference,  their  colleagues  from  Belgium,  France, 
Great  Britain  and  the  United  States  unite  in  extending 
their  sincere  sympathy. 


64          THE  INTERNATIONAL  TRADE  CONFERENCE 

President  Ferguson  in  the  Chair. 

Mr.  Bedford  introduced  Mr.  Homer  L.  Ferguson,  presi- 
dent of  the  Chamber  of  Commerce  of  the  United  States, 
as  chairman  of  the  opening  session.  Mr.  Ferguson  said : 

Ladies  and  Gentlemen:  I  have  just  arrived  from  Wash- 
ington, and  were  I  not  down  in  the  printed  program  as 
chairman  this  evening,  I  think  it  would  be  taking  very 
unfair  advantage  of  anyone  to  pick  him  up  suddenly 
from  the  midst  of  a  labor  conference  and  transfer  him 
bodily  and  in  thought  to  an  assemblage  like  this,  which 
is  gathered  together  for  purposes  entirely  of  peace,  and 
with  a  harmony  of  feeling  which  I  assure  you  is  most 
grateful. 

During  the  past  two  weeks  it  has  been  quite  impossi- 
ble for  anyone  doing  the  work  which  I  have  tried  to  do  to 
think  of  remarks  suitable  to  this  occasion.  I  am  not  say- 
ing this  by  way  of  apology,  but  I  am  simply  telling  you  the 
truth.  However,  it  requires  no  preparation  to  assure 
our  distinguished  visitors  on  the  part  of  the  Chamber 
of  Commerce  of  the  United  States  that  they  are  most 
welcome,  and  to  assure  them  that  we  are  glad  to  see 
them  and  hope  that  their  entire  time  in  the  United  States 
may  pass  as  pleasantly  and  as  profitably  as  we  believe  the 
past  ten  days  have  passed  for  them. 

The  other  night  we  welcomed  them  in  a  home  gather- 
ing, where  the  directors  of  the  Chamber  greeted  them 
as  guests.  We  became  acquainted  with  them  and  were 
pleased  to  have  them  tell  us  that  after  their  official  visit 
is  over  they  expect  to  come  and  see  us  again.  We  believe 
that  we  are  all  well  on  the  road  to  a  permanent  friendship 
and  acquaintanceship  that  will  make  gatherings  such  as 
this  not  at  all  unusual,  but  to  be  expected  and  as  neces- 
sary to  help  carry  out  the  part  which  business  men  the 
world  over  must  play  in  the  reconstruction  of  the  world 
in  putting  it  back  on  its  feet  again  in  a  commercial  and 
economic  sense. 

Production  on  farms,  in  factories,  in  mines,  and  the  car- 
rying on  of  the  transportation  which  is  vital  to  produc- 


THE  INTERNATIONAL  TRADE  CONFERENCE          65 

tion — this  is  all  just  as  essential  to  us  as  it  is  to  our 
friends  across  the  sea.  While  we  are  discussing  labor 
troubles  and  internal  dissensions,  it  is  just  as  well  to 
remember  that  labor  troubles  follow  upon  industry  and 
do  not  precede  the  establishment  of  business,  but  follow 
it.  Without  business,  without  manufacturing,  there  can 
be  no  labor  troubles,  and  we  believe  that  in  the  United 
States  without  our  foreign  trade,  without  the  safety 
valve  of  our  business,  our  enormous  production  not  only 
of  food  stuff's,  but  of  manufactured  articles,  would  recoil 
upon  us,  and  our  labor  troubles,  even  though  serious  as 
they  are,  would  be  magnified  tenfold  by  an  over-produc- 
tion here  of  manufactured  goods  and  by  unemployment; 
so  that  we  are  just  as  deeply  interested  in  keeping  up  a 
foreign  trade,  particularly  with  our  European  friends,  as 
are  our  friends  from  Europe.  Our  internal  affairs,  in 
particular  our  labor  troubles,  are  not  only  influenced  by 
similar  conditions  abroad — there  is  a  most  intimate  con- 
nection— but  are  also  influenced  by  our  commerce  with 
our  friends  abroad,  and  we  depend  vitally  upon  the  con- 
tinuation of  that  commerce.  Our  friends  are  going 
through  the  United  States  at  the  invitation  of  the  Cham- 
ber of  Commerce  of  the  United  States  and  with  joint 
invitations  from  representative  business  associations  in 
the  great  cities;  and  in  their  tour  to  Philadelphia  and 
Baltimore  and  Washington,  Pittsburgh,  on  west  to  Kan- 
sas City  and  to  Chicago,  and  back  through  the  Great 
Lakes,  we  want  in  friendly  spirit  to  tell  them  that  while 
we  have  a  great  and  fine  country,  it  is  a  right  difficult 
country  to  understand,  and  if  they  really  want  to  know 
it  well  they  will  have  to  come  again. 

The  United  States  cannot  be  summed  up  in  a  phrase, 
and  it  is  not  a  good  subject  for  epigrams.  Every  four 
years  or  so  we  make  a  valiant  effort  to  determine  what 
people  think  about  a  subject,  and  even  then  everyone  is 
not  satisfied,  and  many  of  us  on  the  east  coast  have  never 
taken  advantage  of  a  trip  West.  We  go  to  Europe,  as  a 
matter  of  fact,  instead,  sometimes,  and  we  do  not  know 
so  much  about  the  United  States;  but  at  least  we  know 


66          THE  INTERNATIONAL  TRADE  CONFERENCE 

this,  that  important  as  may  be  the  great  cities  and  im- 
portant as  may  be  the  great  industries,  the  backbone  and 
the  heart  of  the  United  States  lies  in  the  small  cities  and 
in  the  towns  and  on  the  farms,  and  there  if  they  should 
stop  perchance,  they  would  find  many,  many  people,  mil- 
lions of  people,  who  have  no  dread  of  this  specter  of 
Bolshevism,  but  think  this  is  a  bully  country  to  live  in, 
and  who  in  the  last  analysis  will  not  be  swept  off  their 
feet  by  any  confusion  of  tongues,  or  by  any  wild  advice 
from  long-haired  men  or  short-haired  women. 

I  appreciate  very  much  what  Mr.  Bedford  said  in  regard 
to  the  competition  we  shall  have  after  the  war.  We  shall 
have  competition  with  our  friends  and  with  their  coun- 
tries, and  we  know  it;  but  if  it  is  a  fair  one,  if  it  is  an 
honorable  one,  so  much  the  better.  Let  us  have  business 
practices  that  will  be  such  that  high-minded  and  honor- 
able men  may  always  respect  our  respective  countries, 
and  in  the  uttermost  parts  of  the  earth  may  be  able  to 
carry  on  their  business  in  a  business  way  without  any 
suspicion  whatever  of  unfair  advantage  or  unfair  deal- 
ings. And  it  is  necessary  in  these  business  arrangements 
that  each  country  develop  itself  along  its  own  natural 
lines.  And  may  I  also  say  that  it  is  necessary  if  the  peace 
of  the  world  is  to  be  preserved  without  friction  that  each 
country  shall  have  the  things  that  naturally  belong  to  it 
and  shall  not  be,  in  this  very  complicated  world  of  ours, 
unduly  dependent  on  another  country ;  aye,  not  even  upon 
its  own  partners  and  friends.  Independence  of  a  country 
is  essential  if  the  people  of  that  country  are  not  to  feel 
restricted  and  confined. 

With  these  few  remarks,  which  are  not  intended  to  be 
taken  down  with  the  care  I  notice  on  the  part  of  the 
stenographer,  I  will  close  my  extemporaneous  address 
with  the  renewal  of  the  thought  of  welcome,  that  we  not 
only  in  words  welcome  our  friends  from  across  the  sea, 
but  we  welcome  them  with  our  hearts,  and  in  speaking 
this  welcome,  we  reflect  the  words  and  thoughts  of  all 
the  Americans  with  whom  we  expect  them  to  come  in 
contact. 


THE  INTERNATIONAL  TRADE  CONFERENCE          67 

It  gives  me  great  pleasure  to  introduce  the  next 
speaker,  who  represents  the  State  Department  in  Wash- 
ington. When  we  first  started  the  idea  of  holding  this 
International  Trade  Conference  the  matter  was  taken  up 
with  the  State  Department  in  Washington  and  I  want  to 
assure  you  all  that  we  are  met  not  only  with  their  com- 
mendation, but  with  their  hearty  cooperation  in  this 
work,  and  they  offered  very  kindly  to  help  in  any  way 
possible,  and  to  show  that  they  have  kept  their  word,  they 
have  sent  to  us  tonight  the  Assistant  Secretary  of  the 
Department  of  State  in  Washington,  Hon.  Breckinridge 
Long,  who  will  now  address  you. 


Address  of  Hon.  Breckinridge  Long, 

Third  Assistant  Secretary  of  State,  on  Behalf  of  the  Government. 

This  International  Trade  Conference  is  both  symbolic 
and  prophetic.  It  comes  at  the  time  the  world  is  making 
a  tremendous  effort  to  emerge  from  the  period  of  destruc- 
tion through  which  for  five  years  it  has  passed,  and  to 
reinstate  the  normal  processes  of  constructive  existence. 
The  destruction  has  been  terrible.  It  would  be  awful 
enough  had  it  been  confined  to  those  physical  properties 
which  suffered  from  contact  with,  or  to  those  regions 
which  were  the  scenes  of,  military  activities ;  but,,  unfor- 
tunately, the  effects  are  much  more  extensive. 

The  sinister  consequences  of  the  conflict  through  which 
we  have  passed  permeate  all  lands  and  all  conditions  of 
life.  Devastated  villages,  barren  fields,  the  unnumbered 
graves  of  those  who  gave  their  lives  for  a  cause,  or  who 
died  in  War's  maelstrom,  are  the  unnatural  purposes  to 
which  our  best  manufacturing  efforts  were  directed 
under  the  necessities  of  war,  the  loss  of  efficiency  in  pro- 
duction, the  great  pile  of  the  public  debts,  the  damage 
to  industrial  stability,  the  disturbance  to  political  insti- 
tutions and  the  impairment  of  confidence ;  these  and  many 
others  are  not  discernible  by  the  eye,  nor  measureable  by 


68          THE  INTERNATIONAL  TRADE  CONFERENCE 

set  standards,  and  are  consequently  appreciated  with 
diminished  understanding.  And  yet,  these  and  similar 
matters  are  the  most  appalling  of  the  results  of  war.  In 
the  destruction  of  a  village  there  is  a  definiteness  and  an 
exactitude.  It  is  capable  of  measurement  in  value ;  it  is 
susceptible  of  exact  computation  as  to  the  cost  of  recon- 
struction. If  the  village  is  destroyed,  it  is  destroyed. 
Its  status  is  certain.  The  time  and  labor  necessary  to 
rebuild  it  can  be  known.  But,  in  the  complicated  indus- 
trial life  of  today  the  effect  of  a  great  shock  is  not  meas- 
urable by  any  known  method.  The  consequences  of  the 
shock  appear  intermittently  and  serve  to  magnify  our 
fears,  in  the  same  manner  as  those  of  the  superstitious 
and  ignorant — frightened  by  manifestations  which  sur- 
pass their  simple  understanding.  Recurrences  of  dis- 
turbance in  the  economic  and  industrial  worlds  cause  us 
anxiety,  because  we,  too,  are  ignorant  of  the  trend  of 
their  development.  We  are  apt  to  conjure  up  in  our  im- 
agination foreboding  possibilities  for  the  future. 

Now,  while  it  may  not  be  possible  to  measure  with 
certainty  the  damage  which  has  been  caused  to  political, 
financial  and  industrial  structures,  it  is  possible,  in  the 
exercise  of  our  judgments  and  of  our  intellects  and  by 
the  application  of  the  standard  of  our  experience,  to  esti- 
mate its  extent.  Once  estimated  it  is  possible  to  proceed 
with  caution,  rebuilding  upon  more  solid  foundations  and 
for  better  results.  With  all  its  damage  and  destruction 
the  war  has  taught  us  much  and  we  are  now  in  a  position 
to  profit  by  them. 

For  this  reason  I  say  that  this  Conference  is  both 
symbolic  and  prophetic.  It  symbolizes  the  sound  business 
experience  of  two  continents  come  together  to  analyze 
the  wreckage,  to  estimate  the  cost  and  to  form  a  determi- 
nation to  superimpose  on  the  ruins  of  war  a  great  and 
modern  structure.  It  prophesies  that  the  close  cooper- 
ation which  existed  during  the  war  between  our  country 
and  the  lands  from  which  come  these  delegates,  will  con- 
tinue in  peace  and  that  the  ties  of  friendship  which  were 
sealed  in  blood  will  grow  and  develop  in  that  friendly 


THE  INTERNATIONAL  TRADE  CONFERENCE          69 

trade  and  commerce  which  are  so  necessary  to  the  proper 
development  of  the  peoples  of  each  of  our  nations. 

The  Conference  comes  at  a  time  when  the  serious 
thoughts  of  serious  men  can  do  much  to  rehabilitate  the 
damaged  structures  of  the  world.  Trade  is  based  on 
credit,  credit  on  confidence,  and  confidence  can  only  exist 
where  law  is  settled  and  supreme.  There  must  be  an 
established  order.  The  ordinary  processes  of  law  must 
obtain  and  the  ordinary  activities  of  an  organized  society 
must  precede  business  activity.  These  can  be  assured 
only  under  an  established  government  properly  function- 
ing as  a  political  organization  and  capable  of  asserting 
its  authority. 

Fortunately  in  each  of  the  countries  here  represented 
there  is  such  a  government.  Consequently  the  way  is 
clear  for  the  most  full  and  free  interchange  of  com- 
modities. Our  concern  should  be  for  the  immediate  fu- 
ture to  witness  the  financial  and  economic  operations 
which  will  most  effectively  restore  industry  to  its  normal 
activity.  As  soon  as  this  can  be  done  the  effect  upon 
the  peoples  of  the  different  countries  will  be  to  encourage 
them  and  to  make  more  firm  their  confidence  in  the 
beneficence  of  the  political  organizations  under  the  juris- 
diction of  which  they  respectively  live.  We  will  thereby 
have  contributed  to  the  restoration  of  the  morale  of 
the  world. 

These  things  are  possible,  and  will  be  the  natural  con- 
sequences of  a  conference  participated  in  by  men  of  ex- 
perience, breadth  of  vision  and  patriotism  which  charac- 
terizes those  who  are  here  assembled. 

Mr.  President,  your  Conference  comes  at  a  time  when 
there  is  a  new  spirit  and  a  new  vision  abroad  in  the 
world.  We  stand  at  the  threshold  of  a  new  era.  There 
is  a  knowledge  of  peoples,  of  their  habits,  histories,  sym- 
pathies and  needs  participated  in  by  the  peoples  of  all 
other  lands  which  has  not  existed  heretofore.  The  under- 
lying causes,  the  factors  which  made  this  possible,  are 
mechanical — the  evolution  of  science  and  the  develop- 
ments of  the  laboratory.  The  motive  powers  of  steam 


70          THE  INTERNATIONAL  TRADE  CONFERENCE 

and  gas,  minimizing  distance  on  land,  on  sea  and  in 
the  air,  and  the  instantaneous  reaction  of  electricity, 
echoing  our  voices  through  space  and  transmitting  the 
stories  of  our  thoughts  and  actions  around  the  world, 
have  started  the  processes  of  cementation.  The  world  is 
bound  around  with  bands  of  steel  and  strands  of  copper, 
each  additional  one  doing  its  part  to  overcome  the  ancient 
obstacles  of  time  and  space. 

When  the  scientific  history  of  the  last  hundred  years  is 
reviewed  we  stand  amazed  at  our  development;  and 
when  we  consider  that  the  motor  is  the  child  of  the  pres- 
ent generation  which  already,  even  in  its  infancy,  has 
spanned  an  ocean  in  its  flight,  our  imaginations  can  only 
faintly  perceive  the  possibilities  of  the  prodigy. 

These  scientific  and  mechanical  developments  are  val- 
uable because  they  have  created  avenues  of  communica- 
tion. The  greater  the  facilities  for  communication  the 
closer  are  peoples  bound  together,  and  with  the  continu- 
ing multiplication  of  these  avenues  the  more  immediately 
and  intimately  will  one  people  come  in  contact  with 
others. 

These  agencies  of  communication  have  two  effects. 
Automatically  there  is  created  a  certain  propinquity  be- 
tween countries  really  separated  by  great  distance.  But 
also  they  cause  the  inhabitants  of  one  land  to  take  a 
personal  and  material  interest  in  the  inhabitants  and  in 
the  affairs  of  the  inhabitants  of  other  lands. 

Friendly  relations  between  countries  become  mutually 
advantageous  to  and  mutually  desirable  by  the  composite 
citizenship  of  each,  but  these  relations  also  have  their 
direct  bearing  upon  the  individual  citizen. 

In  days  gone  by,  before  our  social  life  had  become  so 
complicated,  before  specialization  of  labor  and  of  pro- 
duction had  been  developed  to  their  present  high  degrees ; 
in  days  when  a  country  was  not  only  content,  but  able  to 
consume  the  products  from  within  its  own  borders  and 
imported  little  from  abroad;  it  was  an  object  for  the 
particular  and  exclusive  attention  of  statesmen  to  culti- 


THE  INTERNATIONAL  TRADE  CONFERENCE          71 

vate  relations  with  other  governments;  an  object  which 
gave  the  ordinary  citizen  little  concern. 

Today  there  is  a  difference  in  the  land.  Our  life  is 
complicated.  Our  commerce  is  intricate,  and  its  chan- 
nels are  various.  We  produce  more  than  we  need,  but 
not  all  of  the  things  we  consume.  We  export  much  and 
import  a  variety  of  the  products  of  other  lands  and  of 
other  climes.  Such  things  as  "balances  of  trade"  have 
come  to  the  intimate  acquaintance  of  every  banker  and 
every  large  producer,  and  have  made  it  the  concern  of 
each  that  good  relations  of  one  government  with  other 
governments  shall  be  cultivated  and  maintained.  Diplo- 
macy has  been  popularized,  in  that  its  practice  has  a 
direct,  and  possibly  an  immediate  bearing  on  the  ordi- 
nary affairs  of  life. 

All  this  demonstrates  conclusively  that  the  isolation 
of  former  days — a  condition  which  prevailed  in  every 
country,  wherever  situated — has  been  exchanged  for  a 
national  interdependence.  The  isolation  was  physical. 
Space  and  the  lapse  of  time  created  it.  The  interde- 
pendence is  mechanical,  for  by  such  agencies  have  space 
and  time  been  reduced  in  consequence.  The  very  pro- 
cesses of  reduction  have  made  it  the  concern  of  those 
who  are  most  affected  by  it,  and  the  men  who  do  the 
bartering  and  selling  and  transporting,  and  the  dealers 
in  exchange,  and  the  more  numerous  producers,  the 
spinners  and  toilers,  are  brought  face  to  face  with  dip- 
lomatic situations  which  may  affect  adversely  their  means 
of  livelihood. 

In  this  complex  world  of  interdependence  trouble  be- 
tween two  governments  may  block  trade  routes  and  inter- 
rupt commerce  between  countries,  and  the  effect  of  it  will 
reach  back  along  the  avenues  to  the  point  of  origin  of  the 
shipments,  and  back  still  through  intermediate  channels 
to  the  producing  organization,  affecting  both  capital  and 
labor  over  its  whole  route. 

Today  it  is  a  matter  of  business  that  there  shall  be  the 
fewest  possible  number  of  disturbances  to  production 
and  to  commerce,  and  it  is  equally  a  matter  of  business, 


72          THE  INTERNATIONAL  TRADE  CONFERENCE 

and  for  business  men,  to  devise  that  conditions  at  home 
and  abroad  shall  be  such  as  to  keep  open  the  usual  pro- 
cesses of  production  and  trade.  Labor  and  capital  have 
an  interest  in  common  with  the  government,  for  each  will 
be  affected  in  the  same  degree. 

So  these  mechanical  devices  have  brought  the  peoples 
of  the  world  today  to  the  point  where  their  knowledge 
has  been  increased,  and  the  new  thoughts  and  new  ideas 
of  international  cooperation  are  manifestations  of  their 
new  consciousness. 

With  the  fall  of  the  German  Empire  it  was  finally 
decided  that  force  as  the  deciding  factor  is  to  be  elimi- 
nated for  all  time;  that  reason  is  to  prevail;  that  calm 
deliberation  is  to  take  the  place  of  military  demonstra- 
tion; and  that  the  public  opinion  of  the  world,  which  can 
now  be  marshalled  through  these  avenues  of  communi- 
cation, and  capable  now  of  coordinate  expression,  will  be 
called  upon  to  differentiate  between  the  righteous  and  the 
unrighteous,  between  justice  and  injustice. 

In  the  future  there  will  be  fewer  disturbances  to  in- 
dustry so  that  the  normal  processes,  once  re-established, 
may  proceed  to  their  logical  development.  This  Con- 
ference can  do  its  large  part  to  bring  about  the  return 
to  normal  and  to  heal  the  wounds  which  still  gape  on  the 
industrial  and  political  bodies  of  the  world's  great 
nations. 

So  it  is  with  pleasure  that  the  Government  of  the 
United  States  learns  of  the  presence  here  of  delegates 
from  its  neighbors  "over  there,"  welcomes  them  to 
America  and  voices  its  belief  that  their  cooperation  with 
you  is  an  indication  of  the  spirit  of  the  new  era,,  a  spirit 
which  will  bring  success  to  your  efforts  and  peace  and 
tranquillity  in  the  world. 


Address  of  M.  Florimond  Hankar, 

Chairman  of  Belgian  Mission;  Director,  National  Bank  of  Belgium; 
Honorary  Director  General,  State  Savings  Bank  of  Belgium. 

The  Chairman:  We  had  hoped  during  these  series  of 
meetings  to  have  with  us  at  some  time  the  King  of  the 


THE  INTERNATIONAL  TRADE  CONFERENCE 


73 


Belgians,  but  as  the  time  of  meeting  had  to  be  put  off, 
it  could  not  be  so  arranged  that  it  would  fit  in  with  his 
trip  through  the  United  States.  When  we  speak  of  the 
King  of  the  Belgians  and  of  his  country,  we  Americans 
are  filled  with  pride,  and  we  glory  in  that  brave  little 
country  and  in  the  noble  king  who  during  the  months 
and  years  of  war  shared  with  his  troops  a  common  dan- 
ger and  came  out  of  the  war  one  of  the  outstanding 
and  noble  figures  of  all  time.  As  a  representative  of  that 
country  it  gives  me  great  pleasure  to  introduce  the  dis- 
tinguished President  of  the  Belgian  Mission,  M.  Flori- 
mond  Hankar. 

M.  Hankar  spoke  as  follows : 

Mr.  Chairman,  Ladies  and  Gentlemen:  Permit  me  to 
say  to  you  that  my  colleagues  and  I  of  the  Belgian 
Mission,  speaking  at  once  for  ourselves  and  for  our  gov- 
ernment, deeply  appreciate  the  welcome  we  have  received 
here.  It  is  hardly  necessary  for  me  to  add  that  the  pres- 
ence at  this  Confer- 
ence of  so  many  repre- 
sentative business  men 
of  the  United  States  is 
a  signal  honor  to  our 
Mission.  Knowing  as 
we  do  that  you  have 
assemoled  here  from 
all  parts  of  the  coun- 
try, we  are  more  than 
ever  impressed  with 
the  great  significance 
of  our  visit  and  our 
reception  by  you. 

We  have  come  at 
the  kind  invitation 
you  extended  to  us  to 
tell  you  of  the  condi- 
tions in  our  land  and 

M.  FLORIMOND  HANKAR.  to   inform   you    as   to 

our  commercial  needs. 


74          THE  INTERNATIONAL  TRADE  CONFERENCE 

Many  Americans  have  only  a  general  knowledge  of  Bel- 
gium. To  give  you  an  idea  of  the  country  I  come  from, 
I  might  quote  one  of  your  own  authors  in  a  book  I  found 
on  board  the  Northern  Pacific  on  our  trip  across  the 
ocean.  Mr.  Cyrus  C.  Adams,  in  his  "Textbook  of  Com- 
mercial Geography,"  speaking  of  Belgium,  says : 

"The  country  is  about  as  large  as  Maryland  and  is  the 
most  densely  populated  State  in  Europe." 

Again  Mr.  Adams  says: 

"Manufacturing  and  mining  have  made  Belgium  one 
of  the  richest  countries  in  Europe." 

In  spite  of  the  fact  that  the  geographic  situation  of 
Belgium  is  such  that  our  country  has  been  the  center  of 
many  great  wars,  the  Belgian  people  were  not  prepared 
for  this  war,  but  they  were  instantly  ready  to  oppose  the 
invading  foe  of  humanity  and  fight  to  the  last  for  right. 
And  because  our  fight  was  just  and  right,  America  came 
early  to  our  aid. 

We  have  received  many  gifts  from  the  American 
people.  The  name,,  "American,"  is  written  in  gold  in  the 
hearts  of  our  people  and  our  affection  for  the  United 
States  will  go  down  through  the  generations  in  Belgium. 
We  are  thankful  for  what  you  have  done  and  for  the  gifts 
you  have  bestowed  upon  us.  We  received  these  gifts  as 
coming  from  one  friend  to  another.  We  were  proud  to 
accept  them  because  they  were  given  out  of  the  gen- 
erosity of  true  friendship. 

We  have  a  proverb  in  our  country  which  runs : 

"He  who  gives  quickly  gives  twice." 

And  so  it  was  with  America.  The  American  people 
gave  quickly  to  our  Red  Cross.  The  money  you  contrib- 
uted was  turned  over  to  Dr.  Depage,  the  most  prominent 
surgeon  of  Belgium,  who,  with  the  generous  help  of,  and 
under  the  high  patronage  of  our  beloved  Queen  Elizabeth, 
established  the  big  military  hospital  at  La  Panne. 

I  shall  not  attempt  to  tell  you  about  all  the  wonderful 
work  that  was  done  there.  But  I  will  say  to  you,  that 
the  lives  of  thousands  of  wounded  Belgian  soldiers  and 


THE  INTERNATIONAL  TRADE  CONFERENCE          75 

fighting  men  of  other  Allied  nations  were  saved  by  the 
new  and  quick  methods  of  treatment  which  the  hos- 
pital— the  hospital  the  American  people  made  possible — 
was  enabled  to  give  them. 

During  the  war  we  were  surrounded  by  an  almost  im- 
passable iron  wall.  We  could  not  break  through  it  to 
send  our  letters,  communications  or  word  to  the  outside 
world.  The  Belgian  mother  could  not  even  correspond 
with  her  son.  And  then,  one  day,  came  the  Americans, 
and  we  knew  that  we  had  friends  outside  the  wall. 

The  Americans  came  with  the  C.  R.  B.,  as  the  Com- 
mittee for  Relief  in  Belgium  is  known  in  every  household 
in  our  land.  I  know  many  Americans  who  left  their 
business,  their  professions,  their  studies,  to  come  to  our 
aid  in  those  days.  We  shall  never  forget  them. 

The  stoppage  of  food  supplies  in  Belgium  threatened 
our  future  generations.  Children  on  whom  we  depended 
for  the  generations  to  come  were  sorely  in  need  of  food. 
You  never  will  know  what  a  great  need  was  theirs.  And 
then,  you  came  with  the  necessities  of  life,  and  Belgium 
took  renewed  courage. 

I  am  happy  to  tell  you  that  the  results  of  what  you  did 
are  everywhere  visible  in  Belgium.  You  have  only  to  go 
to  our  factories,  into  our  fields,  to  the  places  where  men 
toil  to  see  what  the  food  you  gave  us  in  our  hungry  days 
has  done  to  make  our  people  fit  to  carry  on  the  stren- 
uous work  of  peace  after  the  wearing  days  and  months 
and  years  of  war. 

It  is  not  for  me  to  say  what  our  soldiers  did.  You  and 
all  the  world  know  that.  But  I  may  say  that  we  now  are 
fit  to  go  on  with  the  great  battle  of  life  because  of  what 
America  did  for  us. 

I  take  it  one  of  the  lofty  purposes  of  this  International 
Trade  Conference  is  the  perpetuation  of  the  ties  which 
held  the  Allied  countries  together  so  steadfastly  during 
the  war. 

We  learned  during  the  war  what  can  be  accomplished 
by  cooperation  and  unity  of  purpose.  Unity  of  purpose 
on  the  part  of  the  Allied  powers  saved  the  world  from  the 


76          THE  INTERNATIONAL  TRADE  CONFERENCE 

forces  of  evil  which  threatened  to  destroy  civilization. 
The  same  kind  of  united  effort  now  will  mean  a  com- 
mercial progress  throughout  the  world  unthought  of  in 
the  days  before  the  war. 

One  of  your  mottos,  "In  Union  there  is  Strength," 
is  the  motto  of  Belgium.  We  learned  much  about  union 
of  strength  during  the  great  conflict.  It  was  because  of 
your  high  belief  in  this  motto  that  you  came  to  our  as- 
sistance and  we  all  united  to  preserve  those  things  for 
which  civilized  people  have  fought  down  through  the 
ages. 

It  was  as  certain  as  the  coming  of  tomorrow's  dawn 
that  a  nation,  founded  on  the  fundamental  principles 
upon  which  this  country  was  built,  would  enter  the  war 
on  the  side  of  right  and  help  bring  about  a  union  of 
strength  among  the  Allies  which  would  insure  victory. 
And  so  we  saw  and  learned  what  unity  of  purpose  can 
achieve. 

We  have  won  a  victory  in  war;  we  must  now  strive 
for  as  decisive  a  victory  in  peace.  This  is  the  reason  why 
the  members  of  the  Belgian  Mission  have  come  to  the 
United  States  to  get  acquainted  with  the  people  who  have 
done  so  much  for  Belgium  and  to  let  you  get  acquainted 
with  us. 

You  gave  us  Hoover.  We  felt  in  those  dark  days  that 
there  was  a  union  between  your  country  and  mine  that 
would  endure  forever.  And  then  you  joined  arms  with 
the  Allies  and  we  knew  that  the  bond  had  become  im- 
perishable. 

You  may  imagine,  then,  what  our  feelings  were  when 
we  were  invited  to  come  with  the  International  Com- 
mercial Mission  to  the  United  States  to  meet  you. 

You  know  all  too  well  what  happened  to  my  country 
during  the  war.  You  know  of  our  destroyed  cities  and 
towns,,  our  wrecked  industries,  our  workmen  taken  away 
into  slavery,  and  the  miles  of  devasted  farming  and  fruit 
lands.  That  is  an  old  story  to  you  now,  and  I  am  not 
coming  here,  as  has  been  said,  "to  exploit  our  misery." 

But  there  is  a  new  story  of  Belgium  beginning.  Bel- 
gium's wrecked  towns  and  cities  are  being  set  in  order. 


THE  INTERNATIONAL  TRADE  CONFERENCE          77 

Her  roads  are  being  rebuilt.  Her  shell-torn  fields  are 
being  plowed  and  planted  and  crops  harvested.  Here 
and  there,  manufacturing  plants,  which  were  not  de- 
spoiled of  their  machinery  by  the  invading  foe,  are  oper- 
ating again.  Throughout  the  land  there  is  industry — 
where  industry  is  possible. 

The  people  of  Belgium  want  to  work;  they  want  to 
produce.  Let  me  say  to  you  that  just  after  the  armistice 
there  were  800,000  unemployed  in  Belgium.  And  today 
there  are  less  than  200,000.  The  spirit  of  the  people  is 
there,  but  the  needed  implements  and  supplies  and  some 
foreign  credit  are  lacking. 

And  so  we  look  to  the  United  States  to  furnish  those 
necessary  factors  for  the  development  of  Belgium,  for 
the  building  up  of  a  new  Belgium  that  will  be  more 
prosperous,  more  productive  than  the  old. 

The  people  of  Belgium  are  anxious  to  do  their  share 
— and  more — to  bring  about  a  great  international  union 
of  world  commerce,  pledging  themselves  to  a  universal 
unity  of  effort  which  will  mean  peace  and  prosperity  for 
all  time. 

This,  gentlemen,  is  the  message  I  bring  to  you  from 
Belgium  with  a  reiteration  of  Belgium's  deep  and  ever- 
lasting gratitude  for  what  America  already  has  done  for 
her. 


Address  of  M.  Eugene  Schneider, 

Chairman  of   the  French  Mission;  President  of  Creusot   Works; 

President,  Iron  and  Steel  Institute  of  France  Former 

Member  of  Chamber  of  Deputies. 

The  Chairman:  The  next  speaker  on  the  program 
hardly  needs  any  other  introduction  to  an  American 
audience  than  to  say  that  he  will  be  known  to  all  of  you 
when  I  tell  you  that  he  is  the  maker  of  an  instrument 
of  warfare  which  has  become  a  household  word  in  the 
United  States,  the  French  75.  When  we  found  out  after 
years  of  war  that  our  boys  over  there  had  back  of  them 


78          THE  INTERNATIONAL  TRADE  CONFERENCE 

as  their  principal  artillery  support  these  same  French 
75's,,  and  when  we  knew  that  those  guns  were  right,  we 
were  prepared  to  believe  that  the  builder  of  those  guns 
was  right.  Eighty  per  cent  of  all  the  heavy  guns  of 
France  were  built  at  the  famous  Creusot  Works,  the 
head  of  which  we  believe  employed  more  than  80,000 
men,  who  is  the  chairman  of  the  French  Mission  whom 
I  now  have  great  pleasure  in  introducing — M.  Eugene 
Schneider. 

M.  Schneider  said: 

On  behalf  of  the  French  Mission  I  should  like  to  ex- 
press thanks  for  the  cordial  words  of  welcome  extended 
to  us  in  the  name  of  this  International  Trade  Confer- 
ence. We  shall  always  treasure  the  memory  of  the  won- 
derful reception  this  vast  audience  has  given  us  tonight. 
It  is  typical  of  the  whole-heartedness  and  strength  which 
are  so  highly  representative  of  the  American  tempera- 
ment. Whole-heartedness  and  vigor  of  mind  are  the 
qualities  which  are  the  basis  of  the  material  and  moral 
development  of  America. 

Gentlemen,  I  may  be  permitted  to  speak  in  a  personal 
way  about  these  excellent  qualities  of  the  American  peo- 
ple, for  I  have  had,  as  my  father  had  before  me,  consid- 
erable business  dealings  with  America.  And  I  will  say 
here,  for  the  first  time  in  public,  that  I  received  the  most 
splendid  cooperation  from  America  during  those  early 
years  of  the  war,  when  I  placed  orders  in  this  country 
for  many  hundreds  of  thousands  of  tons  of  steel  and  for 
great  quantities  of  large  caliber  shells.  My  engineers 
reported  that  they  found  everywhere  the  greatest  will- 
ingness and  the  most  whole-hearted  cooperation.  I  am 
happy  to  pay  this  tribute  to  American  spirit. 

And  these  qualities  of  which  I  have  spoken,  namely, 
whole-heartedness  and  vigor  of  mind,  are  the  qualities 
that  we  find  again  today  in  the  initiative  which  the 
Chamber  of  Commerce  of  the  United  States  has  taken. 

It  is  with  real  and  sincere  pleasure  that  we  have  re- 
sponded to  your  invitation.  While  we  take  this  first 


THE  INTERNATIONAL  TRADE  CONFERENCE          79 

opportunity  to  express  to  you  our  most  hearty  thanks, 
while  we  bring  to  your  distinguished  chairman  and  to 
all  of  you,  gentlemen,  our  cordial  greetings,  we  hope  that 
these  greetings  will  go  further  and  through  you  to  the 
whole  American  nation  that  has  acquired  such  an  im- 
perishable right  to  the  admiration  of  the  world. 

Here  we  are,  upon  your  invitation,  in  company  with 
our  Allies,,  ready  to  confer  with  our  American  friends 
upon  the  means  for  satisfactorily  settling  our  common 
interests.  In  our  Mission  there  are  bankers,  shipping 
men,  representatives  of  the  textile,  steel  and  chemical 
industries.  We  form  a  curious  embassy,  quite  an  up-to- 
date  embassy. 

Yes,  gentlemen,  let  us  not  be  mistaken;  it  is  the  kind 
of  embassy  appropriate  to  the  new  era,  the  beginning  of 
which  has  been  marked  by  our  common  victory. 

Before  leaving  Paris,  we  were  received  by  our  Premier, 
M.  Clemenceau,  and  M.  Clemenceau,  with  his  wonderful 
clearmindedness,  told  us : 

"It  is  up  to  you  now  to  lead  the  government  in  those 
paths  which  lead  directly  to  the  general  welfare. 

"More  and  more  diplomacy  will  vanish  before  direct 
agreements  which  will  be  reached  between  the  peoples, 
for  Victory  has  opened  the  era  of  universal  democracy." 

It  is  in  that  direction  that  it  can  be  asserted  that  the 
Chamber  of  Commerce  of  the  United  States  has  taken  a 
really  historical  step.  Whether  we  succeed  through  our 
conferences  in  reaching  definite  agreements,  or  only  the 
basis  of  such  agreements,  it  will  not  be  long  before  the 
importance  of  such  action  will  be  fully  realized ;  for  there 
is  at  least  something  which  will  survive  these  present 
meetings :  that  is,  the  habit  of  meeting  together,  and  con- 
ferring upon  our  mutual  problems  in  an  atmosphere  of 
cordial  friendship.  It  will  mark  also,  I  hope,  the  perma- 
nent organization  of  an  international  economic  institu- 
tion to  carry  out  in  the  realm  of  business  the  idea  of  the 
League  of  Nations. 

Thus,  gentlemen,  you  will  have  given  to  the  course  of 
events  a  decisive  impulse,  and  History  will  say,  as  I  do 


80          THE  INTERNATIONAL  TRADE  CONFERENCE 

today,  that  the  Chamber  of  Commerce   of  the  United 
States  has  been  a  benefactor  to  the  world. 

The  Chairman:  We  wish  to  thank  M.  Schneider  for 
his  very  kind  expressions  of  regard  for  what  the  Cham- 
ber of  Commerce  has  been  trying  to  do. 


Address  of  Sir  Arthur  Shirley  Bemi,  K.  B.  E.,  M.  P., 

Chairman  of  the  British  Mission. 

The  Chairman:  The  next  speaker,  ladies  and  gentlemen, 
represents  a  great  country  and  a  great  aggregation  of 
countries  that  needs  no  introduction,  and  when  I  have 
told  you  that  the  next  speaker,  representing  the  British 
Mission,  in  his  own  person  represents  the  husband  of  an 
American  wife,  I  am  sure  you  will  agree  with  me  that  he 
is  already  very  well  introduced  into  the  United  States. 
He  lived  here  a  number  of  years  and  we  do  not  think  he 
has  entirely  gotten  over  the  habit  yet,  and  I  take  great 
pleasure  in  presenting  the  chairman  of  the  British  Mis- 
sion, Sir  Arthur  Shirley  Benn. 


THE  INTERNATIONAL  TRADE  CONFERENCE          81 

Sir  Arthur  said: 

Mr.  Ferguson,  Ladies  and  Gentlemen:  I  thank  you,  sir, 
for  the  kindly  manner  in  which  you  have  introduced  me, 
and  I  thank  you  and  the  Chamber  of  Commerce  for  the 
kindly  greeting  that  you  have  given  the  British  Mission 
of  merchants  that  came  here  to  attend  the  conference. 

We  who  live  in  those 
little  isles  girt  by  the 
northern  seas,  the 
motherland  of  the 
British  race,  the  cen- 
ter of  our  widespread 
British  Empire — when 
we  come  to  America, 
no  matter  how  long 
the  voyage,  we  always 
feel  that  we  are  not 
far  from  home.  The 
great  hospitality  so 
freely  given,  the  kind- 
ness so  continuously 
shown,  and  that  al- 
most indefinable  lit- 
tle sympathetic  touch 
makes  one  always  feel 
that  there  is  existing 
SIR  ARTHUR  SHIRLEY  BENN.  a  friendship  between 
the  majority  of  the  peoples  of  both  our  lands  that  forms 
a  tie  which  is  stronger  than  contracts  and  is  likely  to  last 
longer  than  treaties. 

America  has  one  great  asset,  an  asset  that  no  other 
country  has;  she  has  sprung  from  the  loins  of  ancient 
Europe;  she  has  been  able  to  take  of  the  best  of  the 
peoples  of  Europe  and  mix  it  with  the  modern  ideas  of 
things  produced  by  science  and  ingenuity.  She  builds  up 
without  pulling  down.  We  in  Britain  love  to  think  of  her 
as  the  gigantic  daughter  of  the  West.  We  see  her  march- 
ing forward  to  the  paths  of  civilization  and  we  love  to 


82          THE  INTERNATIONAL  TRADE  CONFERENCE 

claim  her  with  France,  the  great  immortal  and  indom- 
itable France,,  which  has  her  claims  also  to  building  her 
up. 

It  is  interesting  to  realize  that  nearly  two  hundred  and 
forty  years  ago  LaSalle,  the  great  French  explorer,  when 
he  saw  Comte  de  Frontenac,  the  governor  of  Canada,  the 
French  Governor  General,  and  tried  to  persuade  the  Gov- 
ernor General  to  allow  him  to  make  an  expedition  to  the 
mouth  of  the  Mississippi,  told  Comte  de  Frontenac  that  if 
he  could  join  up  by  a  line  of  forts  the  source  of  the  Mis- 
sissippi and  the  source  of  the  St.  Lawrence  France  would 
be  the  mistress  of  the  country  lying  between.  He  said : 

"I  can  affirm  that  the  source  of  the  Mississippi  comes 
from  somewhere  in  the  vicinity  of  the  Celestial  Empire. 
In  other  words,  France  will  be  mistress  of  the  country 
between  the  St.  Lawrence  and  the  Mississippi  and  it  will 
control  the  trade  of  China  through  the  great  and  mighty 
channel  which  I  shall  build  to  the  Gulf  of  Mexico." 

Ladies  and  Gentlemen,  it  is  not  France  alone  that  has 
her  claims.  Nearly  all  great  countries  in  Europe  have 
done  their  share  in  building  up  your  great  country.  But 
there  is  one  thing  that  we  claim,  and  that  is  that  the 
ideals  and  principles  held  today  by  the  Americans  are 
the  ideals  and  principles  that  were  held  by  your  great 
Americans  who  helped  and  did  found  your  nation.  They 
were  the  principles  of  Washington,  of  Hamilton,  of  Jef- 
ferson, of  Madison,  of  Monroe,  and  scores  of  others,  men 
who  were  bred  and  educated  under  the  British  flag. 

Ladies  and  Gentlemen,  I  venture  to  say  that  those 
ideals  and  principles  are  the  ones  that  are  now  professed 
by  all  of  us  and  that  the  nations  who  have  sent  missions 
here  today  are  nations  who  believe  in  those  ideals  and 
believe  in  those  principles  and  are  determined  to  try  and 
carry  them  out.  We  believe  in  liberty,  but  not  license. 
We  believe  in  the  people  and  the  government  of  the 
people,  by  the  people,  for  the  people,  and  we  believe  that 
better  days  are  coming  for  all  of  us.  We  have  been 
through  this  awful  struggle;  we  have  been  partners  in 
seeing  that  civilization  was  not  trodden  by  the  dominance 


THE  INTERNATIONAL  TRADE  CONFERENCE          83 

of  Germany.  We  are  going  to  be  partners  in  the  recon- 
struction of  our  lands.  We  have  a  hard  road  to  travel. 
Those  of  you  who  have  not  seen  the  devastated  areas  in 
France,  in  that  great  and  brave  little  Belgium,  in  Italy, 
cannot  realize  the  devastation  that  has  been  wrought  and 
the  necessity  of  all  of  us,  of  everyone  who  can  afford  it, 
to  lend  a  hand  in  rebuilding.  I  should  like  just  to  read 
two  verses  that  I  heard  read  by  the  Bishop  of  Bothwell, 
which  I  think  is  a  very  good  proof  of  the  action  that  the 
Allies  intend  taking  and  that  we  will  take : 

"Keep  on  looking  for  the  bright  skies, 
Keep  on  hoping  that  the  sun  will  rise; 
Keep  on  singing  when  the  whole  world  sighs, 
And  you  will  get  there  in  the  morning. 

"Keep  on  sowing  when  you  have  lost  the  crop, 
Keep  on  dancing  when  the  fiddlers  stop; 
Keep  on  fiddling  till  the  curtain  drops, 

And  you  will  get  there  in  the  morning." 


Address  by  Comrn.  Dr.  Ferdinando  Quartieri, 

Chairman  of  the  Italian  Mission. 

The  Chairman:  Before  we  got  into  the  great  war  a  great 
many  of  us  put  in  an  hour  or  so  a  day  tracing  the  battle 
line  across  western  Europe  and  from  Belgium  across  to 
Switzerland,  then  down  in  Italy,  and  we  became  familiar 
with  the  configuration  of  the  country.  We  studied  about 
the  people,  the  character  of  the  land  and  what  they  were 
doing,  and  watched  under  a  nervous  tension  the  line  move 
back  and  forth,  and  nowhere  did  we  watch  with  more 
care  than  in  Italy,  and  finally  we  saw  that  line  surge 
toward  the  north  until  it  passed  Trieste.  We  saw  the 
Italian  arms  predominate  in  that  country,  and  we  came 
to  know  in  this  country  of  the  wonderful  water  power  and 
wonderful  resources  and  beautiful  farms  that  were  devas- 
tated and  laid  waste,  that  must  be  rebuilt,  and  now  we 
expect,  remembering  the  same  names  and  the  same  towns 


84          THE  INTERNATIONAL  TRADE  CONFERENCE 

and  the  same  country,  to  see  Italy  built  up  again  so  that 
Italy  will  become  as  prosperous  as  it  was  before  the  war, 
and  we  expect  to  see  that  result,  because  we  know  that 
the  Italian  people  are  not  only  faithful  and  true  to  their 
country  but  gifted  with  a  remarkable  industry,  skillful 
in  their  work,  thrifty,  and  the  people  are  bound  to  suc- 
ceed when  given  the  opportunity  to  work  and  the  raw 
materials  with  which  to  work,  coal  for  fuel,  wheat  for 
food  for  a  time ;  machinery  to  develop  their  water  power, 
and  these  things  will  help  to  put  them  on  their  feet,  be- 
cause they  only  wait  the  opportunity  to  all  get  busy 
again  and  rebuild  their  wonderful  country.  They  have 
sent  us  a  most  representative  Mission,  ladies  and  gentle- 
men, and  at  the  head  of  that  Mission  is  a  most  distin- 
guished engineer,  the  head  of  one  of  the  greatest  chem- 
ical works  not  only  in  Italy  but  in  the  entire  world,  who 
furnished  during  the  war  the  major  part  of  all  of  the 
explosives  and  chemicals  used  by  the  Italian  army  and 
navy.  In  fact,  I  expect  it  was  his  company  that  furnished 
the  explosives  for  the  two  most  wonderful  torpedoes  on 
record,  or  mines,  when  Capt.  Luigi  Rizzo  himself  individ- 
ually and  alone,  blew  up  two  of  the  most  wonderful  gigan- 
tic battleships  the  world  has  ever  seen.  And  in  doing  so 
probably  stamped  himself  as  the  one  man  in  all  time  who 
single-handed  did  the  greatest  damage  done  to  any  enemy. 
I  take  great  pleasure  in  introducing  to  you  the  President 
of  the  Italian  Mission,  Dr.  Ferdinand  Quartieri. 


THE  INTERNATIONAL  TRADE  CONFERENCE 


85 


Dr.  Quartieri  said : 

Mr.  President,  Ladies  and  Gentlemen:  Allow  me  on 
behalf  of  the  Italian  Mission  to  express  our  warm  appre- 
ciation of  the  cordial  welcome  extended  to  us  by  the 
American  representatives  to  the  International  Trade  Con- 
ference. 

In  organizing  this 
gathering  the  business 
men  and  manufac- 
turers of  this  great 
Republic  took  an  im- 
portant step  toward 
completing  the  great 
work  begun  on  the 
battlefields  by  the  gal- 
lant soldiers  of  all  na- 
tions who  so  gener- 
ously shed  their  blood 
in  the  cause  of  Lib- 
erty and  Civilization. 
You  have  realized 
that  no  mere  military 
victory  could  insure 
the  definite  triumph  of 
these  immortal  prin- 
ciples for  which  the 
supreme  sacrifice  was 

made,  in  the  high  hope  and  assurance  that  it  would  fruc- 
tify in  the  brotherhood  of  nations  and  the  final  cessation 
of  wars. 

This  remarkable  gathering  of  business  men  has  grasped 
the  present  needs  and  future  dangers  of  the  situation,  and 
with  that  enlightened  spirit  of  generous  fraternity  which 
characterizes  your  great  country  has  invited  us  to  come 
and  take  council  with  you  in  your  own  land. 

You  realize  that  it  is  only  by  free  commercial  relations 
that  the  barriers  between  countries  can  be  removed,  and 
that  political  excesses  can  only  be  avoided  if  friendly 


DR.    FERDINANDO    QUARTIERI. 


86          THE  INTERNATIONAL  TRADE  CONFERENCE 

agreements  between  the  nations  insure  the  equitable  and 
most  profitable  distribution  of  natural  resources,  accumu- 
lated wealth,  and  labor. 

All  honor  to  you,  brothers  of  America!  Be  assured 
that  the  hand  which  you  extend  to  the  Belgians,  the 
French,  the  British  and  the  Italians  is  warmly  grasped. 

In  every  humble  home  in  Italy,  America  is  known  and 
loved;  she  is  known  and  loved  by  the  masses  of  our 
people ;  and  this  intimate  knowledge  forms  the  solid  basis 
for  an  enduring  friendship. 

As  men  of  culture,  you  are  acquainted  with  Italy's 
glorious  past;  as  men  of  affairs  you  cannot  be  unaware 
of  the  living  Italy  of  today.  When  traveling  through  our 
country  you  will  have  observed  the  care  with  which  the 
land,  fortunately  subdivided  among  a  large  number  of 
owners,  is  tilled,  and  you  will  have  noted  the  development 
attained  by  the  factories  which  have  sprung  up  all  over 
Italy.  And  in  these  fields  and  factories  your  American 
Red  Cross  workers,  who  came  to  us  in  the  hour  of  stress, 
and  who  have  made  the  name  of  America  popular  in  every 
cottage  in  our  land,  found  once  more  those  Italian  labor- 
ers whom  they  had  learned  to  know  in  their  own  country, 
and  who  have  bathed  with  their  sweat,  and  often  with 
their  blood,  all  the  greatest  works  accomplished  in  the 
world. 

How  often  during  our  travels  the  unanimous  recogni- 
tion of  the  intelligence,  thrift,  and  industry  of  our  people 
has  consoled  us  for  the  harsh  and  frequently  unfair  judg- 
ments passed  on  our  country !  Nature,  niggardly  in  en- 
dowing our  land  with  natural  wealth,  has  graciously  be- 
stowed on  us  this  blessing  which,  today  more  than  ever, 
is  recognized  as  an  asset  of  inestimable  value  by  the 
business  world. 

Our  people  entered  the  great  war  in  no  imperialistic 
spirit  of  conquest,  moved  thereto  solely  by  idealistic  mo- 
tives. It  threw  into  the  struggle  all  its  strength  and  all 
its  wealth  so  that  Italy  should  not  be  absent  from  the 
field  on  which  the  Allies  were  fighting  for  the  freedom  of 
the  world,  and  so  as  to  gather  within  the  boundaries  of 


THE  INTERNATIONAL  TRADE  CONFERENCE          87 

the  Motherland  those  Italian  populations  which,  through 
centuries  of  oppression  had  successfully  resisted  a  con- 
stant and  relentless  process  of  elimination  and  absorption. 

We  Italians  realize  that  the  work  before  this  Confer- 
ence is  that  of  insuring  the  economic  reconstruction  of  all 
the  Allied  countries  which  have  so  cruelly  suffered  in  this 
terrible  war,  including  those  new  states  which  arose  on 
the  ruins  of  the  Austrian  Empire.  Though  their  repre- 
sentatives are  not  here  with  us,  yet  they  are  fully  entitled 
to  the  solicitous  help  of  their  richer  and  more  powerful 
Allies. 

Before  the  war  Italian  industry  and  thrift  had  placed 
the  economic  life  of  our  country  on  a  solid  basis  and  en- 
sured its  steady  progress.  The  rate  of  exchange,  con- 
stantly at  par,  was  the  best  proof  of  this.  A  careful  study 
of  the  situation  will,  I  think,  show  that  there  is  no  reason 
why  we  should  not  again  restabilize  our  position. 

We  see  that  labor,  the  predominant  and  gravest  factor 
of  the  day,  is  resuming  work  throughout  Italy  in  a  satis- 
factory manner,  and  that  our  people  are  returning  to 
those  habits  of  economy  which  the  war  had  disturbed, 
and  which  is  one  of  its  most  conspicuous  virtues. 

The  Italian  government,  free  from  all  old-fashioned 
financial  prejudices,  gave  freely  all  that  was  required  to 
win  the  war ;  it  is  now  prepared  to  give  that  generous  and 
unconditioned  help  to  industry  and  agriculture  which  the 
economic  revival  of  Italy  demands. 

The  heroic  policy  of  very  heavy  taxation  which  was 
adopted  from  the  start,  and  which  has  been  courageously 
persevered  in,  has  yielded  results  which  justify  the  belief 
that  the  national  budget  will  soon  recover  its  equilibrium 
without  inflicting  too  severe  sufferings  on  the  country; 
and  this  is  clear  proof  that  productive  work  has  been 
resumed. 

In  studying  the  items  which  now  turn  the  balance  of 
trade  so  heavily  against  us,  we  find  that  they  fully  justify 
confidence  in  a  rapid  economic  recovery.  The  excess  of 
imports  is  accounted  for  mainly  by  raw  materials  for 
which  there  used  to  be  but  a  limited  demand,  but  which 


88          THE  INTERNATIONAL  TRADE  CONFERENCE 

our  new  factories  now  require  to  transform  into  manufac- 
tured goods  which  Italy  formerly  imported  from  Euro- 
pean countries,  mainly  from  Germany. 

As  for  our  food  imports,  they  will  gradually  be  re- 
duced, now  that  our  men  are  returning  from  the  armies 
to  the  farms. 

Our  industrial  development  and  our  agricultural  revival, 
therefore,  justify  the  belief  that  in  a  few  years'  time  the 
balance  of  trade  will  once  more  be  such  as  to  make  Italy 
the  self-supporting  country  she  was  before  the  war.  She 
will  then  be  able  to  pay  off  the  debts  she  has  incurred 
with  foreign  countries  without  being  unduly  hampered 
by  excessively  high  rates  of  exchange. 

Proud  of  the  great  sacrifices  which  her  people  have 
made  for  the  honor  of  fighting  in  the  ranks  of  the  defend- 
ers of  Liberty  and  Democracy,  Italy  sends  you  her  greet- 
ing. She  is  convinced  that  her  cooperation  will  be  as  val- 
uable to  her  Allies  in  the  industrial  sphere  as  it  was  on 
the  battlefield.  She  is  confident  that  with  your  help  she 
will  be  able  to  develop  more  fully  her  resources  and  to  find 
employment  in  her  own  country  for  her  abundant  supply 
of  labor,  the  value  of  which  you  will  be  the  first  to  appre- 
ciate. 

It  is  this  labor  which  awaits  your  cooperation  to  be- 
come a  bountiful  source  of  wealth  and  prosperity  to  the 
whole  world.  If  your  cooperation  does  not  fail  us — and 
it  will  not — the  Italo-American  understanding  will  yet 
enable  us  to  write  jointly  a  page  in  the  annals  of  history 
not  unworthy  of  the  countries  of  Washington  and  of 
Columbus. 


International  Trade  Conference. 


MORNING  SESSION,  THURSDAY,  OCTOBER  23, 
10  O'CLOCK. 

MR.  JOHN  H.  FAHEY,  PRESIDING. 
Mr.  Fahey  said: 

Once  convinced  that  liberty,  justice  and  civilization 
were  at  stake,  the  United  States  of  America  recognized 
its  duty  and  joined  the  spendid  nations  represented  here 
today  in  the  conflict  which  meant  so  much  to  the  future 
of  mankind. 

By  that  course  America  won  its  place  high  on  the 

world's  roll  of  honor 
beside  its  Allies,  who 
had  so  steadfastly  held 
back  the  enemy  hordes 
until  we  arrived.  Who 
now  doubts  our  readi- 
ness to  sacrifice  blood 
and  treasure  and  do 
our  utmost  when  our 
duty  is  apparent? 

Peace  had  been 
signed;  but  that  hap- 
piness and  prosperity 
for  the  peoples  of  the 
world,  always  coupled 
in  the  minds  of  men 
with  thoughts  of 
peace,  are  yet  not  at- 
tained. Today  they 
still  seem  afar  off  and 
the  road  seems  long 
and  hard. 
The  aftermath  of  war  in  some  of  its  aspects  is  quite 


JOHN    H.    FAHEY. 


90          THE  INTERNATIONAL  TRADE  CONFERENCE 

as  terrible  as  the  struggle  itself.  The  death  of  the  soldier 
on  the  battlefield  when  he  gives  all  for  love  of  country  and 
humanity  is  one  of  the  most  inspiring  things  we  know. 
The  toll  of  death  which  comes  from  battle  is  spectacular 
in  extreme  and  quickly  impresses  itself  upon  the  mind; 
but  as  a  sequence  of  war  there  are  tragedies  quite  as  ter- 
rible but  less  appreciated. 

Undernourishment,  starvation  and  disease  demand  this 
awful  tribute  from  the  war-swept  countries  and  those 
affected  by  its  ravages.  The  process  is  slower  and  more 
subtle,  but  it  may  be  no  less  destructive  in  its  results.  It 
is  not  death  and  sorrow  alone  that  are  involved,  but  the 
threat  to  all  we  hold  dear  in  life,  as  represented  and  pro- 
tected by  modern  civilization. 

Hopeless  men,  unable  to  work  and  to  secure  food  and 
shelter  for  their  families — soldiers  who  have  risked 
everything  in  the  zeal  of  patriotism  for  the  benefit  of 
their  fellows — quickly  turn  in  despair  to  the  belief  that 
the  existing  social  order  must  be  wrong  which  takes  no 
cognizance  of  their  sufferings  or  brings  to  them  no  ade- 
quate relief. 

There  is  nothing  strange  or  unnatural  about  the  de- 
velopment of  such  sentiment.  Men  who  are  starving,  men 
deprived  of  opportunity  to  work,  can  hardly  be  patient 
and  forgiving. 

The  issues  which  brought  us  into  the  war,  therefore — 
freedom,  justice,  the  maintenance  of  civilization — are  just 
as  much  at  stake  today  as  they  were  on  that  fateful  day 
in  the  spring  of  1917  when  we  plunged  into  the  midst  of 
the  struggle. 

Far  removed  from  the  scene  of  actual  conflict,  three 
years  passed  before  we  understood  its  true  significance 
and  were  impelled  to  action.  Still  as  distant  and  as  lack- 
ing in  realization  of  what  is  following  the  signing  of 
peace,  nearly  a  year  has  passed  and  we  are  now  beginning 
to  see  and  understand  that  our  responsibility  is  not  yet  at 
an  end.  Idle  thousands  in  Europe — the  same  thousands 
of  heroes  who  helped  to  save  the  world — are  now  dis- 
tressed and  restless,  facing  cold  and  hardship  in  the 


THE  INTERNATIONAL  TRADE  CONFERENCE         91 

winter  that  is  about  upon  us,  because  they  lack  materials 
with  which  to  work  and  supplies  to  maintain  life  itself. 

Our  sacrifices  were  small,  indeed,  compared  with  those 
of  our  Allies  in  Europe,  and  the  end  of  the  war  finds  us 
practically  the  only  large  country  in  the  world  able  to 
give  substantial  aid.  That  we  wish  to  do  all  in  our  power, 
no  American  and  no  one  who  knows  America  will  doubt. 
The  only  questions  are  the  extent  of  the  need  and  of  our 
ability  to  meet  it. 

It  is  to  examine  these  questions  and  so  far  as  possible 
find  the  answers  that  we  meet  here  today. 

Planning,  courage  and  unity  of  action  won  the  war. 
The  same  factors  alone  will  bring  the  victories  of  peace. 

Obviously  it  is  our  first  task  carefully  to  survey  the 
conditions  in  Europe  and  have  clearly  before  us  the  neces- 
sities of  the  hour,  while  at  the  same  time  we  determine 
our  own  power  to  respond. 

A  distinguished  citizen  of  each  of  the  great  countries 
here  represented  will  put  before  you  the  picture  of  con- 
ditions as  they  are  today  in  his  own  land,  and  leaders 
of  thought  at  home  will  likewise  try  to  place  before  all 
of  us  a  review  of  our  circumstances  and  our  resources. 

It  is  quite  consistent  that  the  head  of  our  great 
Department  of  Commerce,  within  whose  purview  comes 
not  only  the  development  of  our  powers  of  production  at 
home  but  our  ability  to  distribute  abroad,  the  minister 
of  the  Cabinet,  who  through  the  war  has  given  his  days 
and  nights  and  his  whole  mind  and  strength  to  serving 
our  country  in  its  great  effort  to  back  our  soldiers  at  the 
front  to  the  limit,  should  be  our  honored  guest  on  this 
occasion  and  sketch  for  us  the  situation  in  the  United 
States  today  and  its  ability  and  willingness  to  respond  in 
full  measure  to  the  necessities  of  the  world. 

Ladies  and  Gentlemen,  it  is  my  great  privilege  and 
pleasure  to  present  the  Hon.  William  C.  Redfield,  Secre- 
tary of  the  Department  of  Commerce  of  the  United 
States. 


92          THE  INTERNATIONAL  TRADE  CONFERENCE 
Address  of  Hon.  William  C.  Redfield, 

Secretary  of  Commerce  of  the  United  States. 
Mr.  Redfield  said: 

Mr.  Chairman  and  Gentlemen:  May  I  begin  with  a 
purely  personal  note?  My  dear  friend,  the  Ambassador 
from  Italy,  lies  dead  in  his  home  in  Washington.  He  was 
not  merely  an  Ambassador  to  me,  but  a  friend  who  was 
welcomed  in  my  house  by  himself  as  a  family  guest.  It 
was  my  privilege  to  do  what  I  could  to  encourage  him  in 
days  of  trouble  and  to  rejoice  with  him  in  days  of  glad- 
ness. He  was  a  faithful  servant  of  his  country  and  I 
share  with  the  gentlemen  from  Italy  their  sorrow  that  he 
should  be  taken  away  at  this  time. 

Gentlemen  from  France:  Your  Ambassador  is  my  be- 
loved and  personal  friend.  His  noble  American  wife  has 
been  to  him  a  comfort  and  a  stay  through  these  dark 
years.  I  have  seen  him  bear  the  heavy  burdens  and  have 
had  the  privilege  of  rejoicing  with  him  as  the  sun  has 
risen  again. 

We  are  proud  that  Great  Britain  has  sent  to  us  that 
noble  man  who,  could  he  have  had  his  way,  would  have 
saved  all  this  sorrow.  America  honors  Viscount  Grey, 
and  rejoices  that  he  is  here  to  be  one  of  ourselves  in  heart 
and  spirit. 

And  King  Albert  and  his  noble  wife  have  captured 
America.  We  are  theirs.  He  is  one  of  our  Kings,  too; 
and  you,  gentlemen  from  Belgium,  have  got  to  consent 
to  his  dominion  and  that  of  his  Queen  in  our  hearts  also. 
We  must  ourselves  share  him  with  you.  Wherever  he 
has  gone  he  has  won  friends  among  all  who  honor  man- 
hood and  who  reverence  womanhood  and  who  respect 
courage  under  difficulties. 

And  so  we  are  assembled  with  united  hearts  and  one 
great  hope  to  continue  a  common  task,  a  task  still  un- 
finished, perhaps  barely  begun,  but  one  in  which  our 
hands  and  our  hearts  must  be  united,  if  we  are  to  do  the 
work  that  falls  on  us  to  do. 


THE  INTERNATIONAL  TRADE  CONFERENCE          93 

It  happened  last  Sunday  morning  I  went  to  a  little 
country  church  down  in  Virginia  without  knowing  very 
well  what  it  was  I  should  see.  As  I  sat  in  the  pew  I  saw 
on  the  door  a  plate  telling  me  that  that  was  the  pew  of 
Nellie  Custis,  the  niece  of  George  Washington.  As  I 
looked  on  my  right  at  the  adjoining  pew  I  saw  upon  it 
"1772,"  and  the  word,  "Washington,"  for  that  was  where 
the  Father  of  our  Country  sat,  in  that  identical  pew  in 
that  little  country  church.  And  it  so  happened,  by  one  of 
those  strange  accidents,  that  the  door  of  the  little  church 
was  open;  and  just  outside,  with  my  right  arm  hanging 
in  Washington's  pew,  I  saw  yonder  there  a  fresh  stone  in 
the  churchyard ;  and  on  it,  cut  in  letters  large  enough  for 
me  to  read,  the  inscription,  "To  an  American  Officer  who 
was  killed  in  the  Argonne."  The  link  of  thought  between 
Washington  here  and  the  dead  soldier  yonder  was  at 
once  affecting  and  inspiring;  and  I  wondered  then  if 
America  could  see  that  the  great  line  of  action  which 
one  began  and  the  other  died  in  finishing  was  still  un- 
finished and  that  much  remained  for  America  to  do  before 
her  part  in  this  great  contest  would  be  completed. 

One  day  there  came  down  to  my  desk  a  statement  pur- 
porting to  be  the  record  for  the  month  of  June  of  the 
exports  and  imports  of  the  United  States.  When  I  opened 
it  and  saw  that  it  said  that  the  exports  of  this  country  in 
that  period  were  $918,000,000  and  the  imports  but  ap- 
proximately one-third  of  that  I  had  no  feeling  whatever 
of  exultation  or  of  joy.  On  the  contrary,  the  grave  sense 
of  responsibility  to  our  country  as  to  what  was  involved 
in  those  figures  became  more  weighty  as  one  thought ;  and 
at  last  it  seemed  a  clear  duty  to  bring  that  matter  before 
the  President  of  the  United  States  in  a  communication 
pointing  out  to  him  the  essential  meaning  of  the  facts 
which  those  figures  revealed.  I  told  him  that  it  was  clear 
that  process  could  not  go  on;  that  it  was  not  right,  or 
even  possible,  that  it  should  continue ;  for  the  building  up 
of  this  enormous  balance  in  favor  of  this  country  was  not 
good,  neither  for  us  nor  for  those  who  were  debtors  for 
those  great  amounts. 


94          THE  INTERNATIONAL  TRADE  CONFERENCE 

The  situation  is  worse  even  than  I  thought  at  that  time 
for  I  did  not  then  recall  what  ought  to  be  clearly  in  your 
minds  as  business  men :  that  when  we  say  we  are  accumu- 
lating now  a  balance,  as  we  call  it,  in  our  favor  of  about 
four  billion  dollars  a  year  as  things  are  now  running,  that 
balance  is  reckoned  in  American  dollars  at  par.  If  it  is 
reckoned  in  the  currencies  in  which  it  must  be  paid  by 
those  who  owe  it  you  must  add  something  like  at  least 
twenty  or  twenty-five  per  cent  from  their  viewpoint  to  it. 
So  the  four  billions  of  dollars  in  our  favor  now,  reckoned 
from  the  standpoint  from  which  it  must  be  considered  by 
most  of  Europe,  is  the  equivalent  of  about  five  billions. 

As  I  see  it,  the  obligations  of  the  world  to  the  United 
States  are,  as  a  whole,  understated.  The  figures  are  so 
very  large  that  perhaps  one  is  afraid  to  put  them  where 
they  really  are ;  but  it  is  just  as  well  for  you  and  me  to  get 
the  facts  as  they  seem  really  to  be  in  order  that  we  may 
know  just  what  the  problem  is  with  which  we  have  to 
deal.  The  ten  billions  of  debt  due  us  from  abroad  is  gov- 
ernment debt.  That  consists  of  loans  made  by  the  United 
States  Government  itself.  It  has  nothing  to  do  with  the 
private  transactions  of  the  time;  it  is  but  one  item  in 
the  great  account.  To  that  must  be  added  soon,  if  not  at 
once,  the  amount  of  a  billion  and  a  half  dollars,  being  ap- 
proximately three  years'  interest  on  this  great  sum, 
which  it  is  probable  we  shall  fund  for  the  nations  abroad, 
making  the  total  government  loan  eleven  billion,  five 
hundred  million  when  so  reckoned.  To  that  must  be  ad- 
ded an  accumulating  balance  at  the  present  rate  of  four 
billions  per  annum  on  merchandise  account  outside  of 
the  government  loans,  making  a  total  of  fifteen  and  a  half 
billions;  and  to  that  must  be  added  another  billion  by 
reason  of  the  difference  of  exchange  of  which  I  have  just 
spoken.  So,  if  we  state  the  problem  as  one  which  involves 
the  earlier  or  later  meeting  of  obligations  at  least  fifteen 
billions  in  extent,  we  shall  know  pretty  well  what  it  is  we 
have  to  face. 

Now,  gentlemen,  debts  are  paid  in  three  ways  and  only 
in  three :  in  services,  in  goods,  or  in  cash  or  credits  which 


THE  INTERNATIONAL  TRADE  CONFERENCE          95 

are  a  deferred  form  of  cash.  The  world  would  be  highly 
thankful  today  if  there  were  some  other  way  in  which 
debts  could  be  paid ;  but,  so  far  as  I  know,  these  are  the 
only  ways  in  which  they  can  be  extinguished.  Before 
the  war  we  had  what  we  called  a  favorable  trade  bal- 
ance of  what  seems  now  a  trifling  sum,  from  four  hun- 
dred to  six  hundred  million  dollars  a  year,  more  or  less 
as  years  vary.  But  that  was  only  a  visible  balance  and 
the  invisible  balance  covered  it  all  up.  We  received, 
for  example,  the  services  of  foreign  vessels  for  carrying 
our  exports;  we  disbursed  in  Europe  large  sums  for 
travelers'  accounts;  we  had  the  services  of  insurance  of 
various  kinds  done  for  us;  and  we  paid  interest  on  for- 
eign investments  in  this  country,  and  in  this  and  other 
ways  absorbed  the  so-called  "favorable  balance."  But 
those  things  do  not  exist  today  and  the  problem  is  the 
worse  on  that  account. 

We  are  not  spending  largely  for  traveling  abroad;  we 
are  creating  our  own  merchant  marine;  we  are  develop- 
ing our  own  marine  insurance  companies  and  our  other 
companies  on  a  larger  scale ;  we  do  not  seek  the  services 
that  we  did  seek  and  which  we  then  had  to  have ;  we  are 
not  able  now  to  buy  goods  largely.  The  remaining  source 
is  cash  or  credit ;  and  in  that  way,  and  in  that  way  chiefly, 
we  must  face  the  problem  as  it  stands.  I  hope  and  be- 
lieve that  we  shall  open  our  doors  much  more  widely  than 
they  now  are  to  receiving  goods  from  abroad;  for  we 
cannot  sell  if  we  do  not  buy. 

This  world  can  never  get  along  with  America  trying 
to  sell  goods  to  everybody  and  asking  cash  in  return. 
It  would  be  arrogant,  it  would  be  unlike  the  spirit  of 
helpfulness  which  pervades  this  country,  it  would  be  im- 
possible, anyhow.  It  is  not  to  be  thought  of  as  a  prac- 
tical proposition  that  we  should  sit  at  the  seat  of  customs 
handing  out  goods  in  return  for  cash  on  delivery,,  and  I 
hope  the  time  may  come  in  America  when  the  business 
men  will  have  gotten  so  much  vision  that  the  idea  of 
selling  goods  abroad  on  the  basis  of  cash  with  order  and 
the  balance  against  shipping  documents  will  hardly  be 


96          THE  INTERNATIONAL  TRADE  CONFERENCE 

respected.  It  arises  out  of  our  juvenile  experience  with 
the  world;  it  is  part  of  the  youthfulness  of  our  country 
in  foreign  trade;  it  goes  back  to  the  time,  relatively 
speaking,  when  men  demanded  cash  on  each  delivery  be- 
cause they  trusted  nobody.  It  is  part  of  the  isolation  of 
thought  of  America  eminently  desirable  from  a  strictly 
retail  point  of  view,  but  quite  unworthy  and  impossible 
of  one  of  the  family  of  nations. 

The  question,  then,  for  us  is  how  we  are  to  help  along 
with  this  mighty  problem  of  which  we  hold  two  phases 
largely  in  our  own  hands.  We  are  the  world's  creditor. 
Are  we  to  be  a  hard  one?  We  have,  in  addition  to  sup- 
plies of  raw  material,  the  finished  material  and  equip- 
ment that  the  world  needs.  How  are  we  to  deal  with 
those  two  problems  which  we  are  to  discuss  today?  How 
would  you  business  men  deal  with  a  customer  of  yours 
who  was  in  trouble  but  whose  record  was  that  of  honor 
and  success,  and  high  character?  Suppose  he,  through 
no  fault  of  his  own,  became  temporarily  overwhelmed; 
what  would  you,  as  American  business  men,  do  with  him? 
Would  you  draw  a  sight  draft?  Would  you  even  ask  him 
to  sign  a  three-months'  acceptance,  or  would  you  rather 
do  what  I  know  you  have  done :  go  to  him  as  a  friend  and 
say: 

"Now,  John,  don't  worry,  don't  worry;  too  bad  you 
had  that  fire;  too  bad  that  flood  came;  too  bad  things 
are  so ;  but  I  am  here  to  say  that  I  am  going  to  help  you 
through.  I  know  you  are  just  as  anxious  to  pay  as  can 
be ;  you  are  a  lot  more  anxious  to  pay  than  I  am  to  get  it, 
because  I  know  you  are  good.  I  am  going  to  stand  by 
you,  John,,  and  help  you  out." 

Now,  that  is  not  altruism;  it  is  just  good  sense,  be- 
cause the  basic  thing  about  John  is  John's  character. 
That  is  the  bottom  of  all  things;  and  if  John  lives— and 
nations  do  not  die — if  John  lives,  John  is  linked  to  you 
from  that  day  forth  by  ties  you  never  can  break;  and 
it  would  not  be  any  good  for  your  competitor  to  come 
around  and  offer  John  goods  at  five  per  cent  less  price 
after  you  had  saved  his  life  for  him.  And  so,  from  hard 


THE  INTERNATIONAL  TRADE  CONFERENCE          97 

business  sense  you  deal  generously  with  a  friend  in 
trouble  through  no  fault  of  his  own. 

Gentlemen,  a  great  horror  of  selfishness  burst  upon 
the  world  in  August  of  1914,  something  so  hideous  that 
the  idea  of  national  selfishness  ought  to  be  hateful  to  us 
all  forever  more,  for  we  saw  it  revealed  in  all  its  naked 
wickedness  and  evil ;  and  against  it  men  struggled,  strug- 
gled for  righteousness'  sake,  and  for  honor  and  for  home, 
bravely  struggled  at  fearful  cost;  and  we,  in  our  com- 
fort and  peace,  did  not  at  first  see  it  was  our  fight  these 
brethren  were  fighting,  and  out  of  it  we  profited  largely 
through  their  need.  We  did,  and  we  cannot  deny  it;  we 
gained  largely  in  material  things  out  of  their  need.  The 
time  had  not  yet  come  when  our  gain  was  to  change 
to  a  spiritual  nature.  It  did  come.  We  at  last  saw  that 
the  English  and  the  French  and  the  Italian  and  the  Bel- 
gian armies  were  fighting  our  battle;  that  it  was,  after 
all,  just  one  modern  phase  of  the  old  battle  of  Christian- 
ity against  Apollyon,  of  Christ  against  the  Devil. 

We  saw  it  at  last  and  we  came  into  the  struggle  and,, 
through  the  providence  of  God,  the  struggle  was  won 
and  the  devil  was  chained.  But  then  the  waste  places 
were  still  left  and  the  idle  hands  and  the  ruined  homes 
and  the  empty  factories.  Are  we  quitters?  Do  we  call 
our  boys  home  when  the  physical  fighting  is  done  and 
say: 

"Thank  God,  it  is  all  over.  Now  we  can  be  at  peace 
here;  with  an  ocean  on  each  side  of  us  we  can  be  per- 
fectly safe.  There  is  nothing  for  us  to  worry  about.  Let 
us  take  care  of  our  own  affairs,  and  let  them  look  after 
their  own  affairs." 

But  we  cannot;  we  laid  our  hand  to  the  plow  and 
we  must  plow  the  furrow  to  the  very  end.  Why? 
There  is  one  thing  more;  we  are  parents,  with  the 
nations  these  gentlemen  represent,  of  new  nations.  There 
sprang  young  countries  into  life,  infants  of  ours,  Poland, 
Czecho-Slovakia,  Serbia,  the  new  Roumania,  and  others 
besides  them.  We  are  the  parents  of  these  people  and 
we  cannot  forsake  our  children,  unless  we  would  be  fore- 


98          THE  INTERNATIONAL  TRADE  CONFERENCE 

sworn  before  the  world.  You  and  I  may  not  win  a  war 
without  having  to  face  the  consequences  of  having  won 
that  war,  and  we  cannot  longer  say — aye,  we  have  said 
far  too  long  already : 

"Take  care  of  yourselves ;  it  is  no  concern  of  ours." 

Once  let  our  people  catch  the  vision  of  a  world  we  have 
in  part  created  ourselves,  and  you  may  be  sure  America 
will  rise  to  that  again. 

But,  gentlemen — gentlemen  from  abroad — we  must  ask 
you  to  be  very  patient  with  this  American  people  in  cer- 
tain things  in  which  they  may  seem  slow  of  action,  and 
in  which  they  may  be  not  prompt  in  response.  You 
should  bear  in  mind  that  from  our  earliest  days  it  has 
been  written  into  every  American  thought  that  we  should 
have  just  as  little  as  possible  to  do  with  the  nations  that 
were  beyond  the  sea  in  any  political  or  military,,  or  other 
than  friendly  and  commercial  way.  Every  party  in 
American  politics  from  our  beginning  down  has  had  that 
as  an  unwritten  or  frankly  stated  doctrine  of  its  creed. 

"No  entangling  alliances  with  the  nations  of  the 
world." 

We  have  carried  it  so  far  as  to  get  it  in  what  we  call 
the  Monroe  Doctrine,  which  is,  after  all,  but  an  exten- 
sion outward  into  the  continents  of  America  of  the  in- 
ward thought  of  every  American  that  we  deal  solely  with 
our  own  domestic  problems.  That  thought  lies  deeply 
ingrained  in  American  life.  It  was  the  power  of  that 
thought  which  in  a  very  large  part  held  us  back  so  long 
from  entering  into  the  great  military  contest.  It  is  the 
reappearance  of  that  thought  in  one  or  another  form 
which  is  delaying  now  our  taking  up  more  actively  the 
duty  we  owe  to  you  and  to  our  other  fellows  in  Europe. 
We  ask  you  to  be  courteously  thoughtful  of  that  old  idea, 
still  powerful,  still  projecting  itself  in  many  minds,  with 
the  momentum  of  a  century  and  a  half  behind  it. 

It  is  a  thought  which  is  passing  away.  It  is  a  thought 
which  in  the  minds  of  our  men  of  vision  has  passed 
away.  It  is  something  which  the  sense  of  duty 
to  be  done  and  a  task  to  be  undertaken  will  entirely  re- 


THE  INTERNATIONAL  TRADE  CONFERENCE          99 

move;  but  it  is  something  which  acts  for  the  time  as  a 
brake,  not  as  a  cause  of  stoppage,  but  as  a  cause  for  a 
relatively  slow  action  that  may  give  you  some  concern. 
But  let  it  once  be  clear  that  we  can  separate  ourselves 
in  thought  or  action  without  being  false  to  ourselves ;  let 
that  once  appear,  make  it  plain,  if  you  will,  in  going 
about  this  country  yourselves,  that  we  are  tied  to  you, 
and  must  pull  together,,  and  then  that  difficulty  will  go 
also. 

I  hope,  Gentlemen  of  England,  France,  Belgium  and 
Italy,  that  you  will  speak  with  great  frankness  to  our 
people.  We  like  it;  we  like  it  quite  as  well  when  it  is 
something  with  which  we  have  not  in  the  past  wholly 
agreed  to.  The  man  who  talks  to  us  man-fashion  with- 
out reserve,  kindly  but  plainly,  is  always  welcome  in 
America. 

Now,  how  are  we  to  deal  with  the  core  of  this  whole 
problem?  That  core  is  this,  to  help  others  who  owe  us 
largely  into  a  position  where  the  payment  of  what  they 
owe  will  not  be  burdensome  to  them,  and  meanwhile  to 
provide  them  on  an  adequate  scale  in  addition  with  the 
thousands  of  things  they  need,  but  for  which  at  the  mo- 
ment they  have  not  the  means  to  pay.  That  is  a  prob- 
lem worthy  of  the  very  best  thought  of  the  American 
business  man,  and  it  is  not  the  most  difficult  because  it 
reverses  this  thought  that  I  have  spoken  of. 

Consider,  gentlemen,  that  at  the  opening  of  our  part 
in  the  war  two  years  ago  in  April,  there  were  considered 
to  be  but  three  hundred  thousand  investors  in  securities 
in  the  United  States,  and  that  as  a  matter  of  fact  over 
twenty-one  million  persons  became  subscribers  to  Liberty 
bonds.  That  was  a  revolution  in  thought.  Now,  just 
such  a  revolution  in  thought  has  yet  to  take  place  in  the 
business  circles  before  we  shall  get  the  means  of  dealing 
adequately  with  this  fraternal  problem.  We  have  not 
been  accustomed  to  buying  the  securities  of  foreign  lands, 
and  there  is  no  time  to  educate  one  hundred  and  ten  mil- 
lion people  in  that  problem.  The  problem  is  too  urgent ; 


100        THE  INTERNATIONAL  TRADE  CONFERENCE 

the  needs  are  too  great;  they  are  here.  We  have  got  to 
do  something  far  more  effective  than  that. 

It  has  seemed  to  me  that  a  new  organization  must  be 
created,,  or  organizations  one  or  more  of  a  kind,  as  yet 
novel  to  our  polity,  but  yet  growing  normally  out  of  it. 
I  do  not  wholly  agree  with  some  of  my  wise  and  con- 
scientious friends,  as  anxious  as  I  am  to  see  this  problem 
handled  adequately,  when  they  say  that  our  banks  are 
able  to  deal  with  it.  I  doubt  if  that  is  either  correct,  or 
if,  being  correct,  it  is  wise.  What  we  must  do  if  we  can 
in  this  matter  is  to  bring  the  entire  credit-giving  power 
of  the  country  to  bear  on  this  problem.  We  placed  our 
great  loans  because  every  household  became  a  partaker 
in  them.  We  must  place  our  great  credits  on  the  same 
principle.  I  hope  we  shall  get  an  organization  which 
shall  combine  within  itself  the  banker,  the  manufac- 
turer, the  merchant  and  every  other  group  of  our  people 
that  desires  to  be  included,  which  shall  represent  the 
whole  round  sphere  of  American  life,  American  economic 
power  and  which,  because  it  does  that,  may  be  made  the 
center  of  an  appeal  in  every  village  in  the  country,  so 
that  in  that  way  we  can  get  the  very  heart  and  mind  of 
the  United  States  with  you  and  for  you. 

Yet  we  may  not  speedily  create  any  such  organization 
to  buy  securities.  If  you  went  into  many  a  prosperous 
town  of  the  central  West  or  the  far  West  or  the  South, 
they  would  not  so  much  as  know  what  was  meant  in  many 
places  if  we  asked  them  to  buy  the  securities  of  another 
land.  We  have  got  to  adapt  ourselves  to  the  existing  con- 
ditions in  order  to  carry  the  problem  through.  There- 
fore, it  seems  to  me  we  must  have  some  such  organiza- 
tion as  I  have  suggested  which  shall  itself  be  in  intimate 
and  active  daily  touch  with  the  countries  who  need  our 
help  and  whom  we  desire  to  serve;  that  that  company, 
that  organization,  shall  have  a  capital  so  large  as  to 
compel  respect  and  confidence  from  the  beginning;  that 
it  shall  be  supervised  by  the  Federal  Reserve  Board,  and 
thus  have  the  added  confidence  of  intimate  touch  with 
the  Government,,  although  I  do  not  believe  that  the  Gov- 


THE  INTERNATIONAL  TRADE  CONFERENCE        101 

ernment  itself  should  have  any  further  place  in  granting 
these  credits. 

Such  an  organization  of  such  a  character,  so  super- 
vised, should  be  able  to  offer  quick  credits  all  over  the 
world,  and  nothing  less  than  the  whole  round  world  will 
do,  for  we  shall  greatly  err,  gentlemen,  if  we  think  of 
ourselves  as  limited  in  this  matter  to  Europe  itself.  It 
might  be  our  duty  in  behalf  of  Belgium  to  help  along 
in  the  Congo;  it  might  be  our  duty  in  behalf  of  France 
to  do  something  in  Madagascar  to  make  some  property 
there  more  profitable.  It  might  be  our  duty  to  aid  in 
Algeria.  When  people  may  come  every  day  we  ought  to 
be  ready  for  them  wherever  they  come  from.  So  I  hope 
for  a  great  organization  which  ought  to  have  not  less 
than  five  hundred  million  dollars  capital  in  it — a  billion 
would  be  better  still — which  will  take  the  securities  of 
nations,  provinces,  states,  railways,  corporations  of  all 
kinds,  public  utilities,  and  against  those  and  supported 
by  its  own  wealth  issue  in  this  country  at  a  current  com- 
mercial rate  of  interest  in  small  and  large  amounts  its 
own  debentures,  so  that  Tom  Jones,  who  has  fifty 
dollars,  can  buy  a  fifty-dollar  debenture  and  know  that 
he  is  helping  France  to  her  feet,  and  be  glad  of  the 
knowledge. 

And  these  should  be  put  upon  a  basis  so  broad,  should 
be  so  disseminated  in  the  country  by  an  organization 
akin  in  its  scope  to  our  Liberty  Loan  organization,  that 
they  should  become  household  words  everywhere,,  for  I 
take  it  that  nothing  less  than  several  billion  dollars  is 
going  to  do  the  job  as  it  ought  to  be  done,  and  that  there 
is  to  the  American  mind  something  inspiring  in  the  very 
bigness  of  it  and  that  we  should  love  it  if  it  was  a  big 
job,  and  we  should  not  care  about  it  so  much  if  it  was  a 
little  one.  So  that  appeals  to  me  as  the  one  thing  which, 
at  the  moment,  modified  as  circumstances  and  discussion 
may  make  necessary  as  the  one  thing  which  seems  to  me 
an  adequate  step — a  step,  for  it  is  but  one — toward  the 
solution  of  this  great  problem.  We  must  wait  for  our 
payments,  gentlemen.  Thank  God,  we  can  afford  to  wait. 


102        THE  INTERNATIONAL  TRADE  CONFERENCE 

We  must  be  patient  and  generous  in  the  waiting.  We 
must  prefer  to  wait;  but  our  friends  across  the  sea  can- 
not wait;  we  must  not  expect  them  to  wait,  gentlemen. 
We  must  be  prompt  and  quick  and  generous  and  we  must 
deal  as  friends  with  friends  and  not  as  hard  misers  with 
those  who  are  in  need. 

I  have  seen  three  or  four  cases  of  propositions  of  loans 
abroad  within  the  last  month  or  two  which  filled  me  with 
shame.  We  cannot,  oh,  my  American  friends,  we  cannot, 
we  cannot  take  advantage  of  those  who  are  in  distress. 
We  cannot  for  our  own  profit's  sake  treat  them  other 
than  brothers.  We  must  not  take  a  big  shade  oft0  the 
loan  we  make.  We  must  look  far  along  the  line  to  the 
profit  of  the  future  and  not  to  the  grasp  and  gouge  of 
the  present.  The  profiteer  has  no  place  in  this  job.  This 
is  a  case  of  helping  brethren  to  their  feet;  and  if  we  do 
that  they,  being  brothers,  will  respond  as  brothers  should. 
Let  us  look  to  the  building  up  of  a  good  will  for  America. 
All  around  the  world  business  men  are  dealing  as  Chris- 
tians and  gentlemen  with  brethren  in  distress.  It  may 
do  something  to  please  the  narrow-minded  group  of  di- 
rectors if  out  of  some  loan  made  at  extortionate  terms 
a  considerable  profit  were  had  for  one  institution;  but 
the  credit  of  America  and  her  ultimate  wealth  would 
suffer  in  the  doing.  I  beg  that  your  hearts  resent  and 
your  minds  refuse  and  your  hands  reject  any  suggestion 
that  in  the  granting  of  credits  to  Europe  in  these  days 
we  do  it  save  on  the  basis  of  brotherly  kindness. 

Nay,  nay,  are  we  to  go  without  reward  for  service? 
Not  at  all,  not  at  all ;  for  these  be  gentlemen  with  whom 
we  deal  and  they  do  not  accept  service  without  reward. 
All  that  I  say  is  that  it  be  due  reward  for  due  service 
rendered  in  the  spirit  of  brethren.  For,,  look  you,  my 
friends,  as  a  final  word,  look  you,  my  friends,  there  are 
three  sources  of  profit  coming  from  this  to  America  just 
as  we  owe  to  them  in  return  for  what  they  did  for  us; 
for  many  of  your  factories,  many  of  your  public  utilities, 
many  of  your  railways  were  built  with  money  loaned  by 
France,  by  Great  Britain,  by  Holland,  by  Belgium,  and 


THE  INTERNATIONAL  TRADE  CONFERENCE        103 

by  other  countries.  We  took  it  up  by  the  billions  of  dol- 
lars when  we  were  in  need.  We  could  not  have  developed 
our  great  economic  structure  without  their  help.  This 
is  but  the  case  of  "turn  about  is  fair  play."  They  did 
not  gouge  us  and  we  will  not  gouge  them.  But  there  are 
three  sources  of  profit  possible  to  us  and  normal  to  us. 
One,  the  righteous,  normal  interest  on  the  investment 
itself.  Second,  the  business  which  normally  will  flow 
from  the  operations  carried  on  by  American  capital 
abroad;  and,  third,  the  business  which  normally  follows 
as  we  build  up  patiently  and  well  the  countries  which 
these  brethren  so  wisely  represent. 

I  thank  you  for  listening  so  patiently  to  this  brief,  and 
necessarily  very  hasty  review  of  a  serious  situation.  It 
is  one  which  is  worthy  of  your  best.  It  makes  an  appeal 
here ;  yes,  it  will  make  an  appeal  to  your  purse  and  your 
action,  but  not  the  appeal  of  charity,,  unless  by  charity 
we  mean  its  ancient  meaning,  love. 


The  Chairman:  I  know  that  I  express  your  sentiments 
when  I  say  to  our  Secretary  of  Commerce  that  we  are 
all  of  us  deeply  grateful  to  him  for  this  accurate  and 
far-visioned  picture  that  he  has  given  to  us  of  America's 
opportunities  and  responsibilities. 


Address  of  M.  Eugene  Schneider, 

Chairman  of  French  Mission;  President  Creusot  Works;  President 

Iron  and  Steel  Institute  of  France;  Former  Member 

of  the  Chamber  of  Deputies. 

The  Chairman:  We  have  heard  a  word  as  to  America, 
her  present  status,  and  her  future  opportunity  and  duty. 
What  of  Europe,  prostrated  by  this  terrible  struggle? 
There  can  be  no  thought  of  war  and  the  successes  that 
have  come  out  of  it  without  realization  of  the  magnificent 


104        THE  INTERNATIONAL  TRADE  CONFERENCE 

contribution  to  success  made  by  the  business  and  indus- 
trial leaders  of  the  world ;  for,  in  the  last  analysis,  victory 
lies  at  the  will  of  those  who  command  materials  and  ma- 
chinery to  place  in  the  hands  of  heroic  soldiers,  and  there 
can  be  no  survey  of  Europe  and  the  magnificent  heroic 
work  done  there  without  the  many  contributions  of  the 
industrial  generals  of  the  world.  In  that  staff  of  mag- 
nificent leaders  none  stands  out  with  greater  prominence 
than  the  head  of  this  distinguished  French  Mission,  our 
guest  here,  M.  Eugene  Schneider,  the  head  of  the  great 
Creusot  Works  of  France. 

President  Ferguson  said  last  night  in  reference  to  him, 
that  the  product  of  his  great  plant,  the  French  75's,  had 
become  a  household  world  in  America,  and  I  am  sure  it 
was  only  through  neglect  that  he  failed  to  mention  the 
fact  that  the  first  shot  fired  by  America  in  the  war  was 
from  the  mouth  of  a  French  75. 

Of  all  the  business  leaders  of  Europe  none  is  better 
qualified,  none  has  more  valuable  experience,  or  better 
analytical  powers  than  has  M.  Eugene  Schneider  to  pre- 
sent to  you  in  picture  the  difficulty  as  it  exists  in  Europe 
today.  It  is  my  privilege  and  pleasure,  therefore,  to  call 
upon  him  as  the  first  of  our  distinguished  guests  selected 
by  all  of  the  Missions  to  first  give  to  us  a  survey  of 
Europe  as  a  whole. 

M.  Schneider  said : 

"Jamais  si  belle  cause  n'avait  attire  1'attention  des 
hommes;  c'etait  le  dernier  combat  de  la  liberte  et  sa 
defaite  ne  lui  laissait  ni  asile,  ni  esperance." 

Gentlemen,  that  is  how  Lafayette  expressed  his  admi- 
ration and  enthusiasm  for  the  cause  of  American  Inde- 
pendence ;  namely : 

"Never  had  so  noble  a  purpose  offered  itself  to  the 
judgment  of  men.  This  was  the  last  struggle  of  liberty; 
its  defeat  then  would  have  left  it  without  a  refuge  and 
without  hope!" 

A  hundred  and  fifty  years  later,  the  same  impulse  urged 
you  to  our  shores,  and  no  sooner  had  your  soldiers  landed 


THE  INTERNATIONAL  TRADE  CONFERENCE        105 

in  France  than  they  saluted  the  tomb  of  Lafayette  with 
these  words : 

"Lafayette,  we  are  here !" 

It  is  with  deep  emotion  that  we  have  now  set  foot  in 
America,  whence  in  a  never-to-be-forgotten  hour  sprang 
the  glorious  legions  which,  in  the  cause  of  righteousness 
and  freedom,  joined  their  arms  with  ours  and  helped  us 
to  win  the  victory.  May  I  add  that  our  visit  is  in  some 
sort  a  pilgrimage  and  particularly  moving  for  a  French- 
man because  he  sees  the  shades  of  those  great  ancestors 
who  so  providentially  formed  a  friendship  now  over  a 
century  old. 

Your  invitation,  gentlemen,  and  the  presence  here  of 
these  Missions  are  the  proof  of  our  desire  to  continue, 
now  that  peace  has  come,  the  good  work  begun  in  the  war. 
We  are  all  convinced  that  our  victory  is  not  an  end  but  a 
beginning,  a  herald  of  further  victories  which  we  shall 
share  together;  and  side  by  side  with  you,  before  the 
boundless  expanse  spreading  out  to  human  activity,  an 
outburst  of  faith  and  hope  lifts  us  up,  while  in  the  heav- 
ens we  see  rising  the  dawn  of  a  new  era. 

In  the  discussions  to  which  we  are  invited  we  shall  be 
unreservedly  plainspoken.  We  are  strangers  to  the  arts 
of  diplomacy.  We  look  men  in  the  face  as  becomes 
friends  who  feel  worthy  of  each  other.  We  shall  tell  you 
of  things  as  they  are,  guided,  not  by  our  desire  to  please 
you,  but  inspired  solely  by  the  truth — not  with  a  pre- 
occupation of  selfish  interests,  but  with  the  lofty  con- 
scientiousness of  our  common  good. 

The  problem  lying  before  us  is  the  greatest  and  most 
stirring  of  all.  We  are  gathered  together  to  examine  the 
state  in  which  the  war  has  left,  not  only  the  countries  we 
represent,  but  also  the  rest  of  Europe  and  indeed  the 
whole  world,  and  to  consult  with  you  about  the  best  treat- 
ment to  insure  the  healing  of  wounds  caused  by  this  un- 
exampled crisis. 

When  the  armistice  was  signed,  now  nearly  a  year  ago, 
all  the  Powers  were  more  or  less  like  sick  men  who,  no 
sooner  have  their  fever  abated,  than  they  think  they  are 


106        THE  INTERNATIONAL  TRADE  CONFERENCE 

well  again  and  start  about  their  business.  They  are 
taught  by  their  helplessness  that  between  sickness  and 
health  there  is  an  intermediate  state  called  convalescence, 
and  they  learn  to  their  cost  that  convalescence  is  as  hard 
to  overcome  as  sickness. 

Only  now  are  we  really  able  to  begin  to  measure  the 
havoc  wrought  by  the  awful  disease  that  war  is.  Physical 
havoc!  Moral  havoc! 

The  physical  havoc  is  easily  seen.  Cast  up  the  account 
of  the  wooden  crosses  in  the  cemeteries,  of  the  women  in 
mourning  in  the  streets ;  travel  from  Dunkirk  to  Belf ort ; 
visit  the  Venetian  provinces  of  Italy ;  go  through  Belgium, 
through  Poland,  through  Serbia;  cast  up  the  account  of 
devastated  fields  and  forests,  burned  factories,  villages 
blown  out  of  existence !  Cast  up  the  accounts  of  billions 
owing  by  the  nations ! 

But,  even  when  you  have  made  up  the  tremendous 
total,  you  will  not  yet  understand  the  enormity  of  the  de- 
struction wrought  by  the  German  people  in  their  last  war, 
the  immensity  of  the  whirlpool  where  they  have  engulfed 
men  and  money.  There  are  figures  so  stupendous  that 
our  imagination  is  at  a  loss  to  comprehend  them.  Can 
you  represent  to  yourselves  10  million  slain,  10  million 
dead  men,  lying  in  three  parallel  continuous  lines 
stretching  from  New  York  to  San  Francisco  ? 

Such  is  the  tribute  that  the  world  has  paid  to  war.  Add 
the  wounded  and  the  maimed  and  those  that  war  has 
rendered  unfit.  You  must  bear  in  mind  that  a  mass  of 
over  thirty  million  human  creatures  have  suffered  from 
the  war,  being  either  utterly  destroyed  or  broken  for  ever. 

When  an  attempt  is  made  to  rate  the  material  losses, 
the  results  arrived  at  are  terrifying.  In  France,  alone, 
the  damages  inflicted  upon  dwellings,  farms,  mines,  fac- 
tories, railroads,  canals  and  highways  amount  to  a  total 
of  27  billion  dollars.  Add  to  that  figure  the  war-expen- 
diture proper,  including  pensions  payable  to  the  widows 
and  the  maimed,  and  the  total  for  France  alone  rises  to 
71  billion  dollars,  a  figure  officially  given  in  the  Chamber 
of  Deputies  on  September  the  ninth,  last. 


THE  INTERNATIONAL  TRADE  CONFERENCE        107 

To  the  different  nations  which  took  part  in  the  war,  it 
is  generally  admitted  that  the  cost  has  been  more  than 
200  billion  dollars.  What  brain  can  conceive  of  such  a 
sum  ?  The  Franco-German  war  cost  France  2  billion  dol- 
lars, including  the  indemnity  exacted  by  Germany;  the 
Russo-Japanese  war  cost  Russia  over  a  billion  dollars  and 
Japan  half  a  billion;  the  Civil  War  cost  three  and  a  half 
billion  dollars.  But  the  war  of  1914-1918  has  cost  ten 
times  more  than  all  the  wars  waged  in  the  world  since 
1850. 

Formidable  though  these  figures  are,  they  do  not  tell 
all  the  facts.  One  of  the  most  evil  effects  of  the  war  has 
been  the  diminished  production  of  certain  raw  materials 
indispensable  to  modern  life.  Everyone  is  aware,  for 
instance,  that  the  world  lacks  coal.  So  acute  is  this  short- 
age in  many  parts  of  Europe  that  it  impedes  industry, 
interferes  with  railroad  haulage,  delays  shipping  and  this 
accentuates  the  general  burden  of  reconstruction,  while 
the  people  are  deprived  of  the  fuel  upon  which  they  de- 
pend for  cooking  and  heating.  Likewise,  there  is  a  short- 
age of  cotton,  linen,  wool,  fertilizers,  oil,  sugar,  grain,  etc. 

At  the  outbreak  of  the  war,  each  nation  was  like  a  vast 
firm  whose  cellars  and  stores  contained  stocks  accumu- 
lated by  former  generations.  At  the  present  time,  cellars 
and  stores  are  well  nigh  empty.  We  used  all  our  stocks 
and  for  a  space  of  five  years  we  produced  only  to  destroy. 
Never  have  the  wants  of  Europe  been  greater  nor  her 
resources  more  scanty.  Eleven  months  after  the  armi- 
stice, eleven  months  after  our  victory,  we  are  poor,  weak 
and  crushed  under  an  enormous  debt ;  our  populations  are 
too  scantily  fed ;  rationing  is  still  in  force ;  the  cost  of  liv- 
ing continues  to  rise  at  a  more  rapid  rate  even  than 
wages  or  salaries ;  many  a  home  is  not  even  assured  of  its 
daily  bread. 

To  be  fed  and  clothed,  to  set  industry  going  and  give 
employment,  we  must  buy  abroad.  And,  as  we  cannot 
sell  abroad  in  the  same  proportion,  the  exchange  rate  of 
our  currency  rises  against  us;  therefore  our  purchases 
cost  us  more,  causing  our  debts  to  increase  and  our  credit 


108        THE  INTERNATIONAL  TRADE  CONFERENCE 

to  fall.  Where  once  we  were  creditors  we  now  have  be- 
come debtors. 

Gold  currency  is  no  longer  seen.  The  distribution  of 
wealth  in  the  world,  the  value  of  money,  international 
trade,  the  conditions  of  labor  have  all  changed.  The  sud- 
den return  to  peace  has  not  been  able  to  stop  our  coun- 
tries on  the  steep  slope  where  war  was  rolling  them. 

The  moral  ravages  of  war  are  no  less  grave,  though  of 
a  nature  more  difficult  to  describe. 

The  war  was  a  powerful  magnet  attracting  the  whole 
activity  of  all  the  individuals  of  the  nation.  Not  an  hour 
but  was  taken  up  by  work,  not  a  minute  free  from 
uncertainty;  every  movement,  every  step  had  its  sig- 
nificance; everyone  was  straining  in  one  gigantic  effort, 
as  our  great  statesman  M.  Clemenceau  remarked  in  those 
striking  words : 

"Je  fais  la  Guerre !" 

When  suddenly  the  magnetism  ceased,  the  mainspring 
snapped.  The  first  impression  was  one  of  relief;  every 
heart  was  brimful  of  joy.  It  seemed  almost  as  if  human 
nature  could  not  stand  such  intense  emotion. 

As  a  float,  suddenly  freed  of  the  weight  that  keeps  it 
down,  shoots  up  to  the  surface  of  the  water,  so  there 
sprang  up  in  the  minds  of  men  a  belief  that  everything 
would  change  radically  and  quickly,  as  though  by  some 
miraculous  process. 

Victory,  so  long  prayed  for,  even  by  unbelievers,  sud- 
denly assumed  a  magical  and  all-powerful  character.  To 
it  would  belong  the  power  of  tearing  the  clouds  asunder 
and  making  the  light  shine  forth.  We  had  left  the 
Inferno ;  we  must  therefore  be  in  Paradise. 

With  its  iron-gloved  hand,  war  had  stimulated  zeal, 
brushed  aside  petty  jealousies,  curbed  impatient  minds, 
subdued  bodies  and  soul  but,  as  it  now  suddenly  disap- 
peared, there  surged  upward  clamorous  demands,  selfish 
passions  and  interests,  hitherto  suppressed  or  util- 
ized for  a  superior  end.  Such  a  state  of  mind  supervening 
in  such  a  precarious  economic  situation,  such  a  paroxysm 


THE  INTERNATIONAL  TRADE  CONFERENCE        109 

of  excitement  upon  too  weakened  a  system,  could  not  but 
stir  up  numberless  complications. 

The  first  intimation  given  to  us  of  this  state  of  affairs 
was  a  slackening  of  effort.  Overstrung  muscles  were 
seeking  rest.  There  spread  over  the  nations  that  had 
been  so  long  at  war  a  wave  of  indolence.  The  workers, 
pleading  the  sufferings  they  had  so  bravely  undergone, 
claimed  an  eight-hour  day.  In  vain  did  economists  point 
out  that  to  remedy  the  general  shortage  it  was  necessary 
to  work  and  increase  production.  No  one  cared  to  over- 
look the  merits  of  the  workers  nor  their  right  to  conces- 
sions; what  they  demanded  was  granted;  moreover,  the 
men  promised  to  do  in  eight  hours  the  work  previously 
done  in  ten.  In  actual  fact,  however,  with  fewer  hours 
of  work  an  alarming  decrease  occurred  in  production. 

Then  came  a  wave  of  delusion  about  the  efficiency  of 
Government  intervention,  a  blind  belief  in  its  absolute 
power  and  its  inexhaustible  providence.  During  the  war 
the  Government  had  been  dictator  and  sole  employer. 
The  Government  provided  everything.  The  Government 
paid  high  wages.  There  was  no  limit  to  its  wealth  and 
liberality.  No  one  complained.  No  one  thought  of  resist- 
ing. The  habit  had  only  to  be  continued  and  the  times  of 
bliss  predicted  by  Karl  Marx  would  be  at  hand. 

Socialization  and  nationalization  were  put  forward  as 
sovereign  remedies  for  all  diseases.  The  railroads,  the 
mines,  the  merchant  fleets,  water-power,  if  nationalized, 
were  to  bring  back  abundance  and  prosperity;  and  the 
masses  began  to  demand,  in  a  more  pressing  manner  a 
radical  social  transformation. 

Yet  the  cost  of  living  continues  to  increase  day  by  day. 
It  is  attributed  to  the  scarcity  of  foodstuffs,  depreciation 
of  money  and  disorganized  transportation.  But  the  re- 
duced production,  the  increased  wages  and,  above  all,  the 
growing  demands  of  consumers  and  the  general  rapacity 
of  merchants  and  dealers  have  their  share  in  the  crisis. 
At  any  rate,  the  cost  of  living  spreads  dissatisfaction  and 
is  the  chief  obstacle  to  the  blessings  of  Peace. 

And,  lastly,  note  that,  at  the  close  of  the  war,  men  have 


110        THE  INTERNATIONAL  TRADE  CONFERENCE 

become  more  impatient  and  violent.  They  demand  imme- 
diate satisfaction  of  their  uttermost  desires.  They  listen 
willingly  to  agitators  and  extremists.  In  five  years'  time 
the  world  has  been  thrown  out  of  gear.  Yet  these  men 
pretend  to  put  it  right  in  one  day  without  taking  into  ac- 
count either  past  or  present  circumstances. 

One  of  the  consequences  of  this  impatience  is  the  multi- 
plication of  strikes.  Never  have  strikes  been  more  nu- 
merous or  more  brutal  yet  never  has  there  been  a  more 
conciliatory  spirit  among  employers.  Never  has  the  stop- 
page of  work  had  more  disastrous  results. 

It  must  be  acknowledged  that  wisdom  is  in  peril  and  we 
are  tempted  to  recall  the  fable  told  ages  ago  by  Agrippa, 
of  the  stomach  and  the  limbs.  But  why  wonder  that 
amidst  the  universal  upset  the  human  mind  has  turned 
giddy?  A  new  name  has  been  bestowed  on  the  malady 
from  which  it  suffers: 

Bolshevism. 

Everyone  knows  what  the  word  means.  If,  at  certain 
times,  and  in  certain  places,  the  illusion  was  entertained 
that  out  of  Bolshevism  might  be  evolved  a  stable  and 
prosperous  regime,  it  is  only  too  sure  today  that  in  the 
grip  of  that  mad  force,  Russia  is  slowly  dying.  Nothing 
is  more  tragical  than  the  death-throes  of  that  gigantic 
body,  convulsed  by  madness.  When  one  thinks  of  the 
sacrifices  made  by  the  Russian  people  in  the  common 
cause,  one  cannot  but  feel  an  immense  pity.  It  behooves 
us  to  keep  ever  before  us  that  Bolshevism  is  a  social 
plague  which  must  be  prevented  from  spreading  at  any 
cost.  Bolshevism  is  dangerous  both  directly  and  indi- 
rectly. 

Directly,  since  its  leaders  are  striving  at  a  methodical 
propaganda.  Their  avowed  design  is  to  set  the  world 
ablaze  so  as  to  realize  their  crazy  plans.  And  because 
Bolshevism  can  prolong  its  existence  only  by  spreading  to 
other  countries,  so  Lenine  has  sent  out  into  the  world 
numerous  agents  well  equipped  for  their  nefarious  propa- 
ganda. It  is  no  exaggeration  to  state  that  there  exists 


THE  INTERNATIONAL  TRADE  CONFERENCE        111 

at  the  present  time  a  Bolshevist  plot,  the  network  of 
which  covers  the  whole  world. 

Indirectly,  Bolshevism  is  no  less  dangerous.  Initiated 
by  a  few  reforming  but  powerful  minds,  it  embodies  doc- 
trines in  which  there  is  mostly  nothing  but  the  old  in- 
stinct of  anarchy.  To  this  latter  it  lends  a  semblance  of 
dignity  and  idealism  and  then,  leads  weak  minds  astray. 
It  is  near  enough  to  us  for  its  example  to  attract  and  in- 
vite the  imitation  of  some ;  it  is  far  enough  away  for  the 
effects  of  its  formidable  dictatorship  to  remain  shrouded. 
The  physical  and  moral  disturbance  succeeding  the  armi- 
stice has  singularly  helped  it  to  spread.  And  thus  it  has 
reached  Germany,  Austria,  Hungary,  and  the  rest  of 
Europe  and  thence  the  world. 

It  must  not  be  fancied  that  the  disturbances  to  which 
we  refer  are  confined  to  Europe  or  certain  European 
States.  In  different  degrees  they  are  common  to  the 
whole  world.  They  have  not  spared  neutrals  any  more 
than  belligerents.  Strikes  and  social  unrest  are  to  be 
found  in  Sweden  and  in  Switzerland.  No  country  can 
boast  of  not  harboring  the  poisonous  germ  of  Bolshe- 
vism. We  have  only  to  glance  at  the  newspapers.  We 
have  only  to  open  our  eyes  and  look  around  us.  Through- 
out the  whole  world,  we  see  sudden  outbursts  of  frenzy. 
They  are  to  be  accounted  for  only  in  one  way. 

Those  who  expected  the  millenium  to  arise  from  Vic- 
tory and  Peace  have  been  cruelly  mistaken,  and  those  who 
thought  that,  the  enemy  being  down  and  out,  everything 
would  be  easy,  now  see  that  a  new  effort  is  necessary. 

There  was  no  need  to  explain  the  war ;  everyone  under- 
stood its  message  written  in  blood-red  letters.  The  pres- 
ent struggle  appears  less  clearly  and  in  a  less  imperious 
manner.  It  has  been  defined  as  the  organization  of  the 
convalescence  of  a  sick  world. 

Now,  that  convalescence  must  first  take  place  in  the 
domain  of  economics.  Restore  the  economic  balance  and 
the  moral  balance  will  be  restored  of  itself.  The  man  who 
receives  wages  adequate  for  his  wants,  who  is  decently 
fed  and  can  feed  his  family  decently  does  not  ordinarily 


112        THE  INTERNATIONAL  TRADE  CONFERENCE 

dream  of  complaining.  He  listens  no  more  to  evil  influ- 
ences nor  cares  to  bear  through  the  world  the  torch  of 
revolt.  It  was  said  long  ago  that  the  social  question  was 
a  food  question.  Without  scarcity  of  food  and  bank- 
ruptcy, how  many  revolutions  would  have  been  im- 
possible ! 

To  restore  the  economic  balance  of  the  world — such, 
gentlemen,  is  the  pressing  and  all-important  task. 

How  can  it  be  effected? 

Under  the  pressure  of  circumstances  and  taught  by  ex- 
perience, the  Allies  during  the  war,  in  the  same  way  as 
they  entrusted  their  military  operations  to  one  mighty 
brain  and  generous  heart,  organized  their  production  for 
the  common  good.  To  a  united  military  front  corre- 
sponded a  united  economic  front.  Each  government 
would  cast  up  the  account  of  its  wants  and  receive  its 
proportion  of  foodstuffs,  raw  materials  and  tonnage. 

After  the  armistice,  it  was  thought  that  Liberty  would 
be  sufficient  to  restore  abundance  and  harmony  in  the 
world.  It  was  thought  necessary  to  allow  the  individual 
to  exert  his  spirit  of  enterprise  and  leave  the  different 
governments  to  their  own  responsibilities.  To  continue 
Inter-Allied  cooperation  seemed  like  putting  a  premium 
upon  carelessness  and  laziness,  everyone  being  able  at  any 
time  to  count  upon  the  help  of  others. 

But  is  not  Liberty  at  once  the  best  and  the  worst  of 
systems?  All  depends  upon  circumstances  and  environ- 
ment. Salutary  today,  she  may  be  fraught  with  evil  to- 
morrow. It  may  be  expedient  to  restore  her  only  by  de- 
grees. To  bring  her  back  suddenly  may  destroy  every- 
thing. Liberty,  to  take  wing,  must  have  a  more  stable 
starting-place  than  chaos. 

At  any  rate,  since  November,  1918,  it  cannot  reason- 
ably be  pretended  that  the  convalescence  of  the  world  has 
made  any  progress.  The  evils  from  which  it  suffers  have 
become  worse.  I  was  trying  a  moment  ago  to  tell  you 
how  matters  stood.  Products  have  reached  formidable 
prices.  Their  distribution  meets  with  a  thousand  diffi- 
culties. The  crisis  of  international  money  exchange  has 


THE  INTERNATIONAL  TRADE  CONFERENCE        113 

assumed  unlooked-for  proportions.  Dissatisfaction,  inse- 
curity, anxiety  are  growing  apace. 

The  experience  has  been  so  conclusive  that  the  Allies 
have  called  together  again  the  Economic  Council  which 
they  had  thought  it  possible  to  dissolve.  Once  again,  they 
have  felt  the  necessity  of  cooperation,  the  necessity  of 
following  a  preconcerted  plan,  now  that  new  enemies, 
anarchy  and  the  spirit  of  disorder,  must  be  crushed  as 
Germany  was  crushed. 

Most  emphatically  must  it  be  asserted  that  today  it  is 
not  right  to  exclaim,  "Every  man  for  himself."  Such 
language  would  be  justifiable  if  the  war  had  laid  upon 
all  the  Allies  an  equal  burden  and  if  our  Victory  had  left 
them  all  in  the  same  condition. 

But  it  must  be  recalled  that  Fate  weighed  upon  us  in  an 
unequal  manner.  Fate  levied  neither  the  same  tribute  of 
blood  nor  the  same  tribute  of  money.  Some  saw  their 
land  invaded  on  the  first  day  of  the  war.  Some  served 
on  the  field  of  battle  during  years;  others  were  spared. 
Some  were  obliged  to  devote  their  whole  industrial 
strength  to  war  work ;  others  carried  on  their  commercial 
activities.  The  ones,  for  the  common  good,  gave  up  build- 
ing ships  in  order  to  build  more  guns  and  aeroplanes,  the 
others  launched  new  fleets.  During  the  war  those  who 
had  ships  sent  them  to  those  who  were  short.  Those  who 
had  steel  and  coal  sent  them  to  those  who  had  none.  In 
that  way  was  Victory  secured. 

How  should  we  stand  if  every  one  had  not  tried  to  do 
better  than  his  neighbor,  begrudged  his  sacrifices  and  sel- 
fishly worked  for  his  own  future?  We  should  have  been 
beaten  long  ago.  But,  by  acting  as  they  did,  by  giving 
everything  in  common  to  one  common  end,  the  Allies  have 
contracted  a  mutual  obligation  not  to  forsake  each  other. 
If  they  were  to  forget  that  now,  our  victory  would  belong, 
not  to  all  of  us  but  only  to  some.  It  would  be  changed 
into  a  defeat  for  the  others  and  precisely  for  those  who 
made  the  greatest  sacrifices  to  insure  success. 

When  they  invaded  Belgium  and  Italy  and  especially 
the  north  and  northeast  of  France,  the  Germans  syste- 


114        THE  INTERNATIONAL  TRADE  CONFERENCE 

matically  destroyed  all  industry  likely  to  compete  with 
theirs  after  the  war.  They  set  fire  to  towns  and  villages, 
laid  waste  the  fields,  cut  down  the  orchards,  enslaved  the 
young  and  put  to  the  sword,  generally  in  cold  blood  and 
with  revolting  ruthlessness,  old  men,  women  and  chil- 
dren. In  carrying  out  their  wicked  work  they  thought, 
"Triumphant  or  beaten,  our  enemy  needs  must  succumb 
under  such  treatment."  The  Bulgarians,  when  they  in- 
vaded Serbia,  acted  in  the  same  way. 

Today  the  unity  of  the  Allies  alone  can  foil  such  base 
schemes.  Without  that  unity  we  must  proclaim  from  the 
housetops  that  the  world  will  emerge  from  Victory  beaten, 
and  Germany  will  have  won  the  war.  Everyone  must  be 
absolutely  enlightened  on  that  score.  Given  the  circum- 
stances under  which  Victory  was  won  and  the  price  it 
cost,  it  is  only  a  provisional  and  conditional  victory.  To 
be  final,  the  victorious  team  of  today  must  be  the  more 
prosperous  in  ten  years'  time.  The  honor  of  the  Allies 
would  be  tarnished  if  any  of  them,  through  lack  of  help, 
now  died  of  war  wounds. 

When  America  entered  the  war,  she  said,  "To  the  bit- 
ter end."  Now,  a  military  victory  is  not  the  end  of  the 
war.  By  taking  part  as  it  did  in  the  European  War,  the 
United  States  seemed  the  instrument  of  the  conscience  of 
mankind.  The  minds  that  have  faith  in  the  triumph  of 
idealism,  righteousness  and  morality,  over  brute  force 
and  injustice  looked  up  to,  and  still  look  up  to  America. 

You  cannot  realize  what  a  moral  prestige  your  country 
possesses,  and  it  is  not  possible  for  any  one  of  you  to 
think  of  throwing  away  such  a  precious  asset.  You  have 
all  understood  the  meaning  of  our  victory.  You  know 
that  it  means  the  triumph  of  moral  over  physical  forces. 
You  know  that  the  mightiest  forces  are  righteousness, 
honor,  generosity,  magnanimity.  Because  they  possessed 
none  of  these  forces  the  Germans  were  beaten.  You 
know  all,  that  when  the  fate  of  the  world  remained  still 
uncertain,  you  turned  the  scale  with  the  weight  of  your 
sword.  The  same  feeling  inspired  Lafayette  when  he  said 
to  Silas  Deane,  "You  must  show  confidence,  and  it  is  in 
the  midst  of  perils  that  I  care  to  share  your  fortune." 


THE  INTERNATIONAL  TRADE  CONFERENCE        115 

The  moral  interest  of  the  United  States  is  to  continue 
to  help  Europe.  You  have  proved  to  the  world  that  for 
the  sake  of  an  ideal  you  are  capable  of  the  greatest  sac- 
rifices, and  now,  that  financial  and  commercial  interests 
enter  into  question,  would  you  shrink  from  helping  ? 

The  United  States  should  not  forget  that  it  has  invested 
in  Europe  10  billion  dollars,  a  part  of  its  national  wealth. 
It  generously  lent  money  to  the  Allies  because  it  thought 
them  honest  and  able  to  hold  good  against  the  attacks 
of  the  powers  of  tyranny.  The  Allies  are  today  no  less 
honest  and  no  less  able.  Their  task  is  no  new  one ;  it  is 
the  logical  outcome  of  the  one  in  which  you  took  part;  it 
is  no  longer  the  task  of  winning  the  war  but  of  healing 
the  wounds  of  the  war.  Healing  those  wounds  means  for 
the  Allies  paying  their  debts  and  corning  back  to  health 
and  strength. 

"Stand  back,"  I  say  to  those  whom  a  French  statesman 
has  dubbed  "Apostles  of  Pessimism."  To  be  convalescent 
is  not  to  be  moribund,  and  it  would  be  a  paradox  indeed, 
to  doubt  the  valor  of  a  champion  when  he  has  just  won  a 
match. 

In  1914,  Germany  thought  the  Old  World  exhausted. 
She  thought  she  alone  remained  in  good  health  amidst 
many  sick  nations  and  that  she  could  easily  overcome 
such  puny  adversaries.  On  that  delusion  she  built  her 
plan  of  campaign;  she  counted  on  Frivolity  in  France, 
weakness  in  unprepared  Belgium,  indifference  in  Great 
Britain  and  Italy.  She  misread  the  signs.  A  second 
time  she  made  a  similar  and  no  less  destructive  mistake. 
She  thought  she  could  allow  Bolshevism  to  spread  through 
Russia  without  being  infected  herself.  And  lo !  It  came 
to  pass  that  Bolshevism  easily  gnawed  at  her  vitals.  And 
the  nations  whose  fall  she  expected,  displayed  on  the  con- 
trary, the  indefinite  resources  of  indomitable  determina- 
tion. 

Our  old  nations  that  have  known  so  many  vicissitudes 
contain  within  themselves  mysterious  forces  which  come 
to  light  in  time  of  peril.  Do  not  be  mistaken.  Ours  is  but 


116        THE  INTERNATIONAL  TRADE  CONFERENCE 

a  temporary  weakness.  We  are  bound  to  recover.  In  only 
one  case,  gentlemen,  would  it  be  permissible  to  despair. 
If  we  had  no  consciousness  of  our  condition  or,  if  having 
the  consciousness,  we  took  our  condition  for  granted  with 
hearts  resigned  and  arms  crossed. 

Now,  gentlemen,  what  is  the  situation  in  the  Allied 
countries?  Plans,  criticisms,  activity,  haste  everywhere. 
Are  those  signs  of  death  ?  No !  Rather  symptoms  of  life. 
When  the  anthill  has  been  disturbed,  the  ants  hurry  about 
in  apparent  disorder.  The  passer-by  may  believe  they  are 
fleeing  from  their  destroyed  home.  But  next  day  he  will 
find  it  rebuilt.  Everywhere  the  European  organism  is 
reacting;  everywhere  antidotes  are  being  elaborated; 
everywhere  the  remedy  is  arriving  for  the  disease. 

At  the  present  moment,  we  are  suffering  from  three 
main  diseases;  insufficient  means  of  transportation,  high 
prices,  inflated  paper  currency.  Note  that  each  evil  bears 
in  itself  its  antidote.  The  crisis  in  transportation  comes 
from  insufficient  rolling  stock.  No  doubt,  but  it  rises  also 
from  a  formidable  increase  in  traffic.  High  prices  and  in- 
flated currency  come  from  insufficient  production  and 
profiteering.  No  doubt,  but  they  arise  also  from  a  con- 
siderable increase  in  consumption.  If,  immediately  after 
the  armistice,  life  had  begun  again  slowly  and  according 
to  the  rhythm  adapted  to  our  scanty  means,  there  would 
have  been  no  crisis.  The  crisis  occurred  because  life  was 
impetuously  driven  through  too  narrow  a  channel — be- 
cause the  hearts  of  men  were  beating  too  fast  and  too  im- 
patiently. 

In  our  several  countries,  the  Governments  and  the 
people  are  endeavoring,  with  an  energy  resembling  that 
displayed  during  the  war,  to  cope  with  the  evils  and  stamp 
them  out.  Road  transportation  is  organized;  traffic  is 
diverted  to  the  canals ;  no  possible  expedients  are  ignored. 
Laws  have  been  made  against  profiteers.  City  councils 
have  become  dealers  in  foodstuffs.  Governments  have 
opened  stores  and  stimulated  cooperative  buying.  The 
people  are  forming  protective  leagues.  The  Press  tries 
its  best  to  back  these  efforts. 


THE  INTERNATIONAL  TRADE  CONFERENCE        117 

As  to  the  international  money  exchange  crisis,  had  this 
not  been  foremost  in  our  preoccupations,  we  should  not 
have  crossed  the  Atlantic  to  confer  about  it  with  you. 
Never  mind  if  success  does  not  come  immediately.  The 
essential  thing  is  to  attack  the  problem;  the  essential 
thing  is  to  show  good  will. 

I  spoke  a  moment  ago  of  the  moral  ravages  of  the  war. 
In  that  field  also  a  vigorous  effort  of  prophylaxy  has  be- 
gun. When  the  eight-hour  day  became  law  the  repre- 
sentatives of  the  workers  acknowledged  that  the  reduc- 
tion should  not  entail  a  diminution  in  production.  Yet, 
production  had  diminished. 

This  then  raises  the  questions:  "Must  machinery  be 
improved  ?  Must  overtime  be  worked  ?  Must  we  fall  back 
to  a  ten-hour  day"  ?  Open  a  Belgian,  French,  English,  or 
Italian  newspaper.  The  subject  is  discussed  by  men  of 
opposite  parties  with  remarkable  high-mindedness. 
Every  factory,  every  workshop  is  trying  to  institute 
bonus  systems  or  other  schemes  of  payment  likely  to 
enhance  the  spirit  of  increased  production. 

The  abuse  made  of  the  work  socialization  and  nation- 
alization has  now  brought  about  a  formidable  reaction. 
The  common  sense  of  the  people,  their  instinct  of  social 
conservation  have  both  shown  themselves  in  opposition  to 
premature  experiments,  particularly  when  proposed  under 
such  highly  unfavorable  circumstances.  Public  opinion 
though  ready  to  stand  by  the  workers  in  any  reasonable 
claims  and  to  help  them  in  any  efforts  toward  better- 
ment, has  made  it  clearly  understood  that  there  are  limits 
which  must  not  be  overstepped  and  that  revolutionary 
adventures  are  not  to  its  taste.  Strikes  upon  which  agi- 
tators were  counting,  have  failed  for  lack  of  popular  sup- 
port. Everywhere  the  more  moderate  elements  among 
the  workers  are  getting  the  upper  hand.  The  interna- 
tional strike  that  was  to  have  broken  out  on  July  21st  was 
a  signal  failure.  But  the  idea  of  labor  contracts,  and  of 
recourse  to  arbitration,  as  between  employers  and  em- 
ployed, is  making  progress. 

Bolshevism,  after  fancying  that  Europe  would  be  an 


118        THE  INTERNATIONAL  TRADE  CONFERENCE 

easy  prey,  has  met  with  an  indomitable  resistance  in  the 
Allied  nations.  It  broke  out  in  Munich  and  Budapest,  but 
stopped  at  Allied  frontiers.  This  does  not  mean  that  we 
do  not  dread  it,  but  we  are  on  our  guard.  In  all  the 
allied  countries  the  elements  of  order  are  grouped  against 
Bolshevism.  In  all  elections  the  motto  is:  "War  against 
Bolshevism."  Unless  she  is  deliberately  cast  into  the 
monster's  jaws,  old  Europe  will  not  allow  herself  to  be 
devoured. 

In  such  times  as  we  are  passing  through,  it  is  extremely 
difficult  to  find  out  what  is  taking  place  in  Europe.  Trav- 
elers who  visit  our  countries,  even  if  they  talk  with  the 
best  informed  men,  can  hardly  appreciate  the  real  degree 
of  vitality  of  our  nations. 

For  that,  it  would  be  necessary  to  mix  with  the  popula- 
tions of  the  cities  and  watch  the  thousands  and  thousands 
who  work  in  the  factories ;  but  anyone  seeking  that  expe- 
rience would  come  back  fully  reassured. 

He  would  have  seen  the  Belgians,  fired  with  their  hero- 
ism, strongly  tempered  by  their  trials,  sweeping  away  the 
ruins  and  already  hard  at  work.  He  would  have  seen  the 
Englishmen  in  spite  of  labor  troubles,  methodically  grap- 
pling with  every  problem,  slowly  winning  back  their  for- 
mer position  in  shipping  and  doggedly  forcing  down  the 
unfavorable  balance  of  trade.  He  would  have  seen  what 
a  fund  of  energy  the  Italian  people  possess,  abstemious, 
hard-working,  always  ready  to  earn  money  abroad  and 
take  it  home  to  the  old  country.  He  would  have  seen 
France  mourning  the  loss  of  a  million  and  a  half  of  her 
sons,  with  her  fairest  provinces  laid  waste,  clasping  in  her 
arms  reconquered  Alsace-Lorraine,  prouder,  more  up- 
right, more  resolute  than  ever.  In  all  our  countries  he 
would  have  seen  mothers,  wives,  and  daughters,  of  heroes, 
some  of  whom  have  bent  over  the  wounded  in  ambulances 
and  others  taken  in  the  place  of  soldiers  in  factories,  on 
farms  and  in  every  form  of  labor — women  of  every  social 
grade,  showing  the  same  confidence  in  the  future,  the 
same  hopeful  smile. 

We  were  told  that,  among  those  who  have  recently  been 


THE  INTERNATIONAL  TRADE  CONFERENCE        119 

in  Europe,  some  have  returned  with  the  impression  that 
France  seems  the  most  weakened.  Is  it  not  because  for 
five  years  thousands  of  square  miles  of  her  territory  was 
the  battlefield  of  the  world  and  because  it  was  she,  who 
made  the  greatest  and  longest  sacrifices?  For  the  last 
six  hundred  years  it  has  been  said  that  France  is  lost! 
The  saying  was  current  at  the  time  of  the  Hundred  Years' 
War.  It  was  repeated  after  the  religious  wars  of  the 
sixteenth  century.  It  was  repeated  after  the  Revolution. 
It  was  repeated  again  in  1870.  Yet,  every  time,  she 
springs  up  younger  and  stronger  than  ever ! 

The  land  of  Joan  of  Arc,  Henri  IV,  Napoleon,  cannot 
perish ;  nor  can  that  country  perish  which  has  given  birth 
to  the  blue-coated,  blue  helmeted,  mud-bespattered  war- 
rior— the  wonderful  and  immortal  "Poilu."  The  words  of 
a  French  general,  whom  you  all  know,  may  be  applied  to 
the  undaunted  spirit  of  France.  When  the  flower  of  the 
German  army  was  hurled  against  the  20th  Army  Corps  in 
the  first  battle  of  the  Marne,  the  great  Foch,  then  only  a 
divisional  general,  wired  in  reply  to  the  anxious  inquiry 
of  the  Commander-in-Chief :  "Enemy  pressing  on  my 
right  and  breaking  through  my  centre ;  maneuvering  out 
of  question;  am  taking  offensive." 

The  question  is  therefore  not  whether  we  shall  recover. 
Recovery  is  certain  and  those  who  put  their  trust  in  us 
will  not  be  deceived.  The  question  is:  How  long  will  it 
take  us  to  recover?  With  your  help,  recovery  will  be 
speedy ;  without  you,  recovery  will  be  a  more  difficult  and 
lengthy  process. 

If  you  remain  strangers  to  our  efforts  you  will  remain 
strangers  to  our  future,  but  you  will  not  remain  strangers 
to  our  sufferings.  You  will  know  our  sufferings  and  evils, 
which  will  reach  you  in  spite  of  yourselves,  in  spite  of  our- 
selves. The  war  has  once  again  proved  that  the  earth  is 
round  and  a  singularly  smaller  planet  than  of  old.  The 
times  are  no  more  when  a  farmer  could  quietly  plow  in 
one  valley  while  fighting  and  killing  was  going  on  in  the 
next.  A  disturbance  in  one  part  of  the  world  is  felt  in 
every  other  part,  just  as  an  atmospheric  disturbance  in 


120        THE  INTERNATIONAL  TRADE  CONFERENCE 

one  zone  affects  the  wind  in  the  uttermost  regions  of 
space.  The  ocean  is  no  more  a  barrier  against  social  and 
political  storms  than  it  is  against  a  hurricane. 

I  am  convinced  that  the  United  States  cannot  hold  aloof 
from  Europe.  The  needs  of  Europe  are  great  and  varied 
and  she  will  remain  for  a  long  time  one  of  your  best  cus- 
tomers. Suppose  that,  on  account  of  the  rate  of  ex- 
change, we  should  cease  buying  from  you.  How  would 
your  industries  be  affected?  Would  there  not  be  over- 
production. Would  there  not  be  considerable  unemploy- 
ment? Would  there  not  be  a  wide  economic  disturbance 
with  all  its  consequences  ? 

The  gold  heaped  up  in  the  cellars  of  your  banks  must 
not  give  you  too  much  confidence.  Bear  in  mind  that 
gold  is  a  fiction.  Its  value  arises  from  its  being  a  medium 
of  exchange.  If  the  gold  is  all  on  one  side,  exchange  be- 
comes an  impossibility.  An  abundance  of  gold  may  be  as 
evil  in  its  consequences  as  a  scarcity  of  gold. 

Your  interest,  no  less  than  ours,  is  involved,  in  the 
financial  problem  of  the  Old  World,  and  if  only  loans  can 
bring  the  rate  of  exchange  down  to  a  reasonable  level, 
that  should  be  one  reason  the  more  for  Americans  to 
invest  in  such  loans. 

It  is  not  out  of  place  to  recall  here  the  example  of 
France  in  the  past,  as  quoted  by  an  American  author, 
Charlemagne  Tower,  in  his  remarkable  work  on  La- 
fayette : 

"Comparatively  few  people  of  the  present  generation 
are  aware  of  the  inestimable  benefits  which  the  French 
conferred  upon  our  forefathers  during  the  American  Rev- 
olution, at  a  time  when  America  was  without  credit 
abroad  and  when  our  cause  aroused  no  other  national 
sympathy  in  the  world  than  that  of  our  faithful  ally. 

"But  for  us  Americans  the  essential  facts  to  be  remem- 
bered in  connection  with  the  alliance  are  that  we  went 
of  our  own  accord  to  France  to  ask  for  help,  and  that  we 
received  it  from  her.  Not  only  did  she  encourage  us  by 
the  permission  which  she  granted  our  agents  to  obtain 
supplies  and  munitions  of  war  in  her  ports  for  the  main- 


THE  INTERNATIONAL  TRADE  CONFERENCE        121 

tenance  and  equipment  of  the  Continental  Army,  but  she 
employed  her  own  credit  to  borrow  large  sums  of  money 
which  she  advanced  to  Congress,  and  she  sent  her  soldiers 
and  her  sailors  to  serve  under  the  command  of  General 
Washington  and  to  fight  for  us  in  the  battles  of  the 
Republic." 

If  the  United  States  should  forsake  us,  the  war  would 
be  a  stirring  and  glorious  memory,  but  also  an  episode 
without  lasting  benefits,  something  like  an  uncompleted 
work.  A  merciless  economic  war  would  soon  break  out, 
and  once  more  clouds  would  gather  in  that  clear  and  beau- 
tiful sky  that  should  eternally  spread  over  the  ceme- 
teries where  our  glorious  dead  lie  side  by  side,  sharing 
their  glory  after  having  shared  their  perils. 

Gentlemen,  you  want  the  Victory  to  be  a  just  one,  that 
is  to  say,  one  that  shall  make  reparation  for  the  wrongs 
inflicted  by  the  war ;  you  want  the  Victory  to  be  beneficial, 
that  is  to  say,  the  first  link  of  a  new  chain,  the  dawn  of  a 
new  era  of  peaceful  work  and  progress. 

For  the  sake  of  American  trade  and  industry,  for  the 
sake  of  the  loans  you  have  made  to  us,  for  the  sake  of 
helping  Europe  to  start  production,  for  the  sake  of  sweep- 
ing away  discontent  and  consolidating  Peace,  and  for  the 
sake  of  preserving  and  increasing  American  prestige,  you 
will  surely  work  with  us. 

Behind  us  stand  nations  whose  guardians  we  are  be- 
cause we  have  freed  them  from  oppression.  Let  us  not 
separate  our  cause  from  that  of  the  Czecho-Slovaks  and 
the  Poles  and  the  Jugo-Slavs.  When  we  speak  of  our 
recovery  we  think  also  of  theirs.  By  helping  us  you  are 
helping  them. 

To  the  Chamber  of  Commerce  of  the  United  States  is 
due  the  credit  of  foreseeing  and  understanding  the  pres- 
ent situation,  and  it  has  shown  the  American  people  the 
road  to  follow.  This  day  that  has  brought  us  together 
will  remain  a  memorable  one.  For  there  will  be  no  real 
peace,  no  resurrection  in  the  world  as  it  is,  if  the  peoples 
of  the  Allied  and  Associatied  Nations  do  not  get  into 
close  touch,  exchange  views,  compare  notes  and  add  the 


122        THE  INTERNATIONAL  TRADE  CONFERENCE 

ties  of  business  to  those  of  sympathy.  That  is  why  we 
are  here.  By  getting  together  we  serve  the  interests  of 
our  several  countries  as  well  as  the  higher  interests  of 
humanity.  We  must  remain  faithful  to  the  ideal  that 
brought  us  together  during  the  war,  so  that  when  we  re- 
turn to  our  countrymen,  assured  of  your  help  and  stronger 
on  account  of  your  support,  we  shall  repeat  the  words 
our  great  French  Minister  Turget  wrote  in  1776:  "Amer- 
ica is  the  hope  of  mankind." 

The  Chairman:  M.  Schneider,  I  must  say  to  you  before 
you  go  that  no  more  impressive  or  thoughtful  statement 
of  the  conditions  of  Europe  has  yet  been  placed  before  the 
American  public  than  that  you  have  just  now  given  to 
us.  It  would  be  impossible  to  place  before  us  as  a  basis 
of  our  deliberations  in  this  conference  a  more  compre- 
hensive, a  more  instructive  or  studious  statement  than 
that  which  we  have  just  listened  to. 


AFTERNOON  SESSION. 
THURSDAY,  OCTOBER  23,  2  O'CLOCK. 
Mr.  Fahey,  in  the  chair,  said: 

Ladies  and  Gentlemen:  There  are  in  the  world  shrines 
so  holy  as  to  inspire  almost  religious  emotions  on  the  part 
of  even  the  most  irreverent.  There  are  words  known  to 
all  the  world  which  bring  a  thrill  to  every  hearer  when- 
ever they  are  mentioned.  Such  a  word  is  "Belgium." 
Synonymous  of  all  that  is  great  and  fine  and  unselfish,  the 
name  of  that  little  giant  among  nations  will  live  so  long  as 
the  world  shall  endure.  We  are  privileged  this  afternoon 
to  hear  from  a  worthy  citizen  of  that  splendid  land,  M. 
Canon-Legrand,  President  of  the  Society  of  Engineers  of 
Belgium,  President  of  the  Chamber  of  Commerce  of  Mons, 
president  from  its  inception  of  the  International  Congress 
of  Chambers  of  Commerce,  who  has  come  here  because  he 


THE  INTERNATIONAL  TRADE  CONFERENCE        123 

felt  it  was  his  duty  to  do  so,  involving  though  it  did  great 
sacrifices  on  his  part.  With  his  plants  destroyed  by  the 
Huns,  his  business  laid  low  as  a  result  of  their  devasta- 
tion and  cruelty,  yet  he  felt  it  his  duty  to  his  land  still  to 
be,  and  his  duty  to  humanity  and  to  Europe,  that  he 
should  come  here  with  this  distinguished  Belgian  Mission 
to  be  our  guests  for  this  Conference.  It  is  more  than  a 
pleasure,  ladies  and  gentlemen ;  it  is  more  than  a  privilege, 
it  is  an  opportunity  which  I  consider  one  of  the  great 
honors  of  my  life  to  present  M.  Canon-Legrand,  my  friend 
of  ten  years,  now  on  this  occasion. 


Address  of  M.  Canon-Legrand. 

On  Belgium. 

Mr.  Chairman,  Ladies  and  Gentlemen:  This  morning 
M.  Schneider  gave  you  a  general  idea  of  the  situation  in 
Europe  today.  He  told  you  of  the  increasing  industry 
there.  Of  course  you  understand  that  conditions  are  not 
the  same  in  all  the  countries  of  Europe.  Belgium  must 
be  considered  specially.  Our  land  was  totally  invaded  by 
the  enemy,  except  for  a  small  part  which  was  held  by  our 
army,  and  the  destruction  wrought  by  the  Germans  was 
widespread. 

"Destroy  Belgian  industries,"  was  the  order  Berlin 
gave.  And  that  command  was  carried  out  to  the  letter. 
There  were  in  existence  during  the  war  two  German  or- 
ganizations known  as  the  Thoma  and  the  Wumba.  The 
former  was  the  group  entrusted  with  the  destruction  of 
Belgian  and  French  factories,  while  the  latter  attended 
to  the  theft  of  machinery  and  material.  The  records  of 
the  work  of  organizations  fell  into  the  hands  of  the  In- 
telligence Department  of  our  army  and  I  have  seen  them 
with  my  own  eyes. 

The  Wumba  organization  had  a  most  complete  descrip- 
tion of  all  our  factories  and  industrial  plants  and  ma- 


124        THE  INTERNATIONAL  TRADE  CONFERENCE 

chinery  and  tools  in  each  one.  By  a  system  of  espionage 
the  Germans  for  a  period  of  years  during  the  war  com- 
piled an  inventory  of  all  machinery  and  equipment  in  our 
plants  from  the  great  steel  girders  and  cranes  down  to 
the  smallest  tools  and  the  glass  in  the  windows  and  sky- 
lights. The  value  and  utility  of  all  these  machines  and 
instruments  was  carefully  kept  by  card  index.  German 
manufacturers,  factories  and  firms  were  furnished  by  the 
Wumba  with  lists  of  available  machinery,  tools,  etc.,  and 
the  prices  at  which  they  could  be  purchased.  As  soon  as 
purchasers  were  found  the  material  they  wanted  was  sent 
to  them  in  Germany  by  the  organization  of  vandals  en- 
gaged in  despoiling  our  industries. 

We  have  the  names  of  the  five  big  German  firms  which 
comprised  this  organization  of  vandals.  They  and  the 
government  of  Germany  profited  by  the  sale  of  our  stolen 
machinery.  Special  inquiries  were  sent  to  German  col- 
lieries asking  what  they  needed  in  the  way  of  machinery 
and  equipment  in  the  coal  mines  of  northern  France. 
Special  maps  and  photographs  of  the  material  available 
was  supplied. 

In  true  German  spirit  the  Wumba  compelled  Belgian 
and  French  civilizians  who  were  virtually  in  slavery,  to 
demolish  the  factories  of  their  own  countries  and  remove 
the  machinery  that  was  in  them.  I  have  seen  circulars 
in  which  the  Wumba  instructed  those  in  charge  of  this 
work  to  get  the  maximum  amount  of  work  out  of  these 
unhappy  workmen,  and  offering  rewards  to  those  who 
made  records  in  despoiling  our  industries. 

It  is  impossible  for  us  to  think  without  a  shiver  of 
dread  how  completely  would  have  been  the  devastation 
and  wrecking  of  our  economic,  political  and  industrial  life 
had  not  victory  come  at  the  time  it  did  and  Belgium  freed 
from  the  vandal  grip  of  Germany. 

Whenever  I  think  of  the  vandalism  of  the  Germans  in 
my  country,  my  mind  goes  back  to  the  International 
Congress  of  the  Chambers  of  Commerce  and  Industrial 
and  Commercial  Associations  in  Boston  in  1912.  At  that 
convention,  of  which  I  had  the  honor  to  be  present,  Mr. 


THE  INTERNATIONAL  TRADE  CONFERENCE        125 

Harry  A.  Wheeler,  as  president  of  the  United  States 
Chamber  of  Commerce,  delivered  an  address  which,  in  the 
light  of  what  has  since  happened  in  the  world,  was  most 
prophetic. 

Mr.  Wheeler  might  have  been  speaking  of  this  Trade 
Conference  when  he  said  to  us  back  in  1912 : 

"The  business  interests  of  the  United  States  are  deeply 
sensible  of  the  importance  of  this  great  gathering.  It 
signifies  to  us  a  recognition  of  a  world  interdependence, 
an  acknowledgment  that  the  happiness,  the  welfare  and 
the  prosperity  of  all  the  people  are  so  interlaced  that 
harm  permitted  to  be  done  to  the  least  of  the  nations 
must  necessarily  find  its  adverse  effect  upon  the  greatest. 
Commerce  had  laid  upon  its  heart  and  its  conscience,  by 
those  who  are  willing  to  attribute  wrong  to  it,  many  atro- 
cious crimes." 

"Yet  save  only  for  the  influence  of  the  great  world  re- 
ligions, commerce  is  the  greatest  single  force  in  the 
world's  civilization." 

At  that  same  congress,  Mr.  Wheeler  really  foresaw  the 
need  of  a  League  of  Nations  which  would  bring  about 
"international  arbitration  of  individual  and  national  dis- 
putes," and  "with  commerce  create  and  maintain  world 
peace." 

I  presented  to  the  Congress  a  resolution  embodying 
Mr.  Wheeler's  ideas  which  proposed: 

"The  Congress  affirms  the  desire  to  see  convened  as  soon 
as  possible  a  number  of  official  international  congresses 
assuring  between  nations  the  existence  of  arbitral  juris- 
diction in  the  widest  sense  of  the  term  and  such  as  may 
assure  an  equitable  solution  of  all  international  contro- 
versies, either  between  the  governments;  and  agrees  to 
the  principle  of  a  combination  of  nations,  where  possible, 
to  endeavor  to  prevent  the  atrocities  of  war." 

Now,  let  me  tell  you,  gentlemen,  that  when  I  proposed 
to  the  German  delegates  at  the  Congress  that  such  a 
resolution  be  adopted  they  protested  and  said  it  was  not 
the  time  and  place  for  such  a  matter.  Finally,  they  had 
to  vote  for  it,  but,  as  I  said,  I  cannot  help  but  think  of  the 


126        THE  INTERNATIONAL  TRADE  CONFERENCE 

attitude  of  those  German  delegates  when  I  look  upon  the 
"atrocities  of  war"  which  their  country  committed  in 
Belgium. 

All  the  other  delegations  at  the  Congress  were  strong 
supporters  of  the  resolution,  and  I  recall  that  Sir  John 
Bingham,  of  London,  said: 

"I  think  we  are  all  in  this  Congress  a  combination  of 
nations  of  the  world  met  here  together  of  one  mind  that 
when  and  where  possible  we  should  endeavor  to  prevent 
the  atrocities  of  war." 

No  such  expression  came  from  the  German  delegates. 
And  Germany  started  the  great  war  and  perpetuated  all 
the  atrocities  of  war. 

The  damage  to  steel  and  iron  was  on  such  an  enor- 
mous scale  that  complete  restoration  will  take  a  long  time. 
But  despite  all  difficulties,  work  is  being  resumed  in  nearly 
all  remaining  factories,  plants  are  being  rebuilt  and  our 
stolen  machinery  is  being  brought  back  from  Germany. 

Belgian  industrial  leaders  are  determined  to  put  their 
plants  back  into  operation  no  matter  what  the  cost.  Steel 
production  now  is  27  per  cent  of  normal  and  iron  produc- 
tion 51  per  cent.  It  would  require  several  hours  for  me  to 
tell  you  in  detail  of  the  destruction  of  factories  at  Liege, 
Hainaut,  Ougree-Marihaye  and  other  places. 

In  the  matter  of  coal  mines,  we  suffered  less  than  the 
French  because  the  Germans  preserved  our  coal  deposits 
for  themselves  in  anticipation  of  the  time  that  never  came 
when  they  believed  they  would  have  Belgium's  seacoast 
and  ports  and  be  able  to  conquer  England. 

But  when  Germany  visioned  defeat  she  set  about  de- 
stroying all  of  Belgium's  industries  which  before  the  war 
had  competed  with  her  in  the  world  market.  Machinery 
in  factories  which  was  not  shipped  into  Germany  was 
wrecked.  One  of  the  great  tasks  confronting  the  Belgians 
after  the  armistice  was  the  recovery  of  the  stolen  ma- 
chinery and  material  to  replace  that  which  had  been  de- 
stroyed. 

Under  the  direction  of  the  Minister  of  Economic  Af- 
fairs, Belgium  has  been  bringing  stolen  machinery  out  of 


THE  INTERNATIONAL  TRADE  CONFERENCE        127 

Germany  at  the  rate  of  3,000  tons  a  week.  The  last  re- 
port I  saw  set  the  total  amount  recovered  at  39,000  tons. 
This  work  began  in  April  and  is  still  going  on. 

One  of  the  most  important  projects  for  the  general  re- 
construction of  Belgium  is  that  of  agricultural  restora- 
tion. The  plan  provides  for  the  taking  over  by  the  gov- 
ernment of  farms  at  their  1914  value,  putting  them  in 
good  condition  and  returning  them  to  their  owners. 

Another  plan  for  bringing  Belgium  back  to  normal  con- 
ditions is  being  carried  out  by  the  Fonds  du  Roi  Albert. 
This  is  an  enterprise  created  in  1916  and  recently  allowed 
by  the  government  40,000,000  francs.  It  has  previously 
received  700,000  francs,  largely  from  American  sources. 
This  institution  provides  homes  for  shelterless  people. 
Huts  are  erected  in  the  devastated  regions.  The  Germans 
destroyed  100,000  homes  in  my  country.  Thus  far,  the 
Fonds  du  Roi  Albert  have  erected  12,000  homes. 

Belgian  railroads  damaged  or  destroyed  during  the 
German  occupation  are  being  rapidly  repaired  and  re- 
established and  on  many  lines  schedules  are  normal. 
When  the  armistice  was  signed  1,500  kilometers  of  rail- 
road had  been  destroyed.  So  rapid  has  been  the  work  of 
restoration  that  there  remain  less  than  55  kilometers  of 
unimportant  lines  unrestored. 

I  was  speaking  to  a  friend  in  New  York  the  other  day 
who  was  discussing  the  destruction  in  Belgium.  This 
gentleman  had  been  in  Belgium  for  several  days.  He 
crossed  our  country  on  his  way  to  Paris  and  saw  our 
devastated  areas.  He  said — which  was  perfectly  true — 
that  the  most  dreadful  havoc  was  where  the  fighting  had 
been  most  severe.  He  said  also — and  in  that  I  did  not 
agree  with  him — that  in  the  country  which  was  near  the 
lines,  the  destruction  was  not  extensive. 

Now  this  gentleman,  like  many  other  visitors  to  Bel- 
gium, drew  his  conclusions  from  what  he  saw  through  a 
car  window.  He  passed  through  many  towns  and  cities 
and  saw  what  he  believed  to  be  undamaged  factories, 
buildings  and  homes.  He  could  not  see  the  inside  of  those 
factories  and  buildings  and  homes.  He  could  not  see  that 


128        THE  INTERNATIONAL  TRADE  CONFERENCE 

the  factories  had  been  stripped  of  all  their  machinery. 
He  could  not  see  the  wrecked  interior  of  the  plants. 

Let  me  give  you  another  example.  You  may  travel 
through  the  country  in  the  rear  of  the  lines  of  battle  and 
see  hundreds  of  buildings  that  appear  to  be  perfectly  in 
order,  except  for  broken  windows  or  slight  damage  caused 
by  shell  fire.  But  if  you  enter  these  buildings  you  will 
find  they  are  absolutely  untenable.  Hundreds  of  them 
were  rebuilt  inside  and  made  into  bomb-proof  dugouts  by 
the  enemy.  Cellars  have  been  converted  into  concrete 
strongholds  and  the  interior  changed  to  suit  the  war 
needs  of  the  occupants.  In  almost  every  instance  it  would 
cost  more  to  restore  these  buildings  and  homes  than  it 
would  to  wreck  them  and  build  anew. 

So  you  see  that  conditions  like  this  which  appear  to  the 
casual  observer  to  be  unimportant  are  great  jobs  of  recon- 
struction which  the  Belgian  government  faces. 

Naturally,,  this  Conference  wants  to  know  all  there  is  to 
know  about  conditions  in  Belgium.  In  opening  the  Trade- 
Conference  last  Monday,  Mr.  Bedford  asked  several  im 
portant  questions  having  to  do  with  this  subject.  Permit 
me  to  answer  them  briefly  and  generally  in  so  far  as  they 
apply  to  Belgium : 

Mr.  Bedford  asked:  "What  are  the  menaces  to  social 
order  and  stability  in  the  different  countries  in  Europe 
today?"  "Have  the  dangers  of  Bolshevism  or  Socialism 
passed?  Is  there  any  danger  anywhere  of  the  confisca- 
tion of  private  property,  the  non-recognition  of  the  rights 
of  ownership  and  business  management  or  the  annulment 
of  law?" 

To  the  first  and  second  questions  I  will  say  that  there  is 
little  taint  of  Bolshevism  in  my  country.  Our  people  are 
restless  and  in  many  cases  dissatisfied,  it  is  true,  but  what 
people  rendered  homeless  by  war  and  facing  the  problems 
of  life  resultant  from  a  great  war  would  not  be  ?  But  that 
does  not  mean  they  are  inclined  against  law  and  order  or 
have  Bolshevik  tendencies.  The  people  of  Belgium  want 
to  work  and  produce  and  when  they  are  enabled  to  do  that 
to  the  full  capacity  of  their  willingness  and  industry  they 


THE  INTERNATIONAL  TRADE  CONFERENCE        129 

will  be  happy.  There  is  no  danger  of  Bolshevism  becom- 
ing a  menace  to  government  and  business  in  Belgium. 

Let  me  assure  you  also  that  there  is  no  danger  of  con- 
fiscation of  private  property,  non-recognition  of  the  rights 
of  ownership  or  annulment  of  laws  upon  which  funda- 
mentally depends  successful  reciprocity  in  commercial  in- 
tercourse between  Belgium  and  the  nations  of  the  world. 

Mr.  Bedford  also  asked:  ''What  are  to  be  the  relations 
between  the  government  and  business  in  the  respective 
countries?  Will  the  various  nations  in  their  reconstruc- 
tion effort  stabilize  relations  between  government  and 
business  that  will  recognize  that  commerce  is  the  great- 
est of  all  interests,  and  will  their  relations  be  based  on 
such  a  statesmanlike  conception?" 

To  this  inquiry  I  reply  that  the  government  of  Belgium 
will  encourage  and  do  all  in  its  power  to  advance  business 
between  my  country  and  other  nations.  Belgium  realizes 
that  more  than  ever  there  must  be  a  community  of  inter- 
est between  the  government  and  business  and  in  line  with 
her  past  achievements  in  world  trade  will  recognize  that 
commerce  is  the  greatest  of  all  interests. 

Mr.  Bedford  quite  properly  asked :  "What  will  the  atti- 
tude of  the  various  governments  be  toward  American 
industry  and  commerce?  Will  it  be  accorded  freedom  of 
trade  and  equal  privilege  and  opportunity,  or  will  it  be 
threatened  with  restriction  of  imports,  and  the  menace 
of  government  control  or  monopoly?" 

Speaking  for  Belgium,  I  may  tell  you  that  my  coun- 
try, as  you  must  know,  desires  always  to  consider  Amer- 
ica as  Belgium's  greatest  friend,  as  an  ally  in  peace  as  in 
war.  Belgium  desires  to  work  with  and  for  America  just 
as  much  for  the  good  of  American  industry  and  com- 
merce as  for  the  advancement  of  Belgium  industry  and 
commerce.  We  want  America  to  have  freedom  of  trade 
without  hindrance  by  governmental  discrimination  or 
monopoly. 

Mr.  Bedford  asked  whether  European  countries  propose 
in  the  future  to  lower  the  cost  of  production  through 
standardization  and  modern  methods,  what  are  the  pros- 


130        THE  INTERNATIONAL  TRADE  CONFERENCE 

pects  for  improved  relations  between  capital  and  labor 
and  what  is  the  probable  policy  in  each  country  toward 
the  cultivation  of  foreign  markets,  the  purchase  of  raw 
materials  and  the  promotion  of  new  industries? 

The  past  record  of  Belgium  answers  those  questions. 
Belgium,  as  always,  will  seek  production  on  larger  scales 
by  means  of  modern  methods.  Belgium  will  continue  to 
strive  for  unity  of  effort  between  capital  and  labor,  be- 
tween whom  even  after  the  war  there  is  but  little  strife. 
Belgium  will,  as  always,  seek  cultivation  of  foreign 
markets  and  the  promotion  of  new  industries. 

The  renewal  of  industry  is  already  very  noticeable  in 
Belgium.  In  our  reconstruction  work,  we  are,  as  I  have 
said,  recovering  our  stolen  machinery  from  Germany. 
We  already  have  recovered  2,884,000,000  francs'  worth 
of  industrial  material,  including  5,069  machines  totaling 
about  40,000  tons.  More  than  9,000  machines  have  been 
identified  in  Germany  by  their  owners  and  the  govern- 
ment has  received  37,000  demands  for  missing  and  de- 
stroyed machinery  from  the  owners. 

In  our  coal  mines,  particularly,  there  is  a  great  renewed 
activity.  Our  coal  production  now  is  86.8  per  cent 
of  what  it  was  before  the  war.  Of  other  indus- 
tries about  32  per  cent  are  in  operation  again.  Chem- 
ical production  is  43  per  cent  of  normal;  coke  industry 
46  per  cent;  blast  furnaces  20  per  cent;  cement  produc- 
tion 37  per  cent  and  construction  work  42%  per  cent. 

Just  after  the  armistice  there  were  800,000  unemployed 
in  Belgium.  Today  there  are  less  than  200,000  and  these 
are  rapidly  returning  to  work. 

This  is  a  marvelous  effort  for  which  we  must  be  thank- 
ful to  our  industrial  leaders  and  our  workers  as  well,  who 
quite  understand  their  obligations  to  their  nation  and  to 
humankind. 

Our  men  are  working  now  at  their  trades  and  profes- 
sions as  well  as  they  did  on  the  battlefield.  We  must,  and 
will,  exercise  economy  and  carefulness.  Our  population 
is  too  dense.  We  must  import  great  quantities  of  alimen- 
tary products  until  our  soil  is  producing  to  its  fullest  ex- 


THE  INTERNATIONAL  TRADE  CONFERENCE        131 

tent.  We  must  and  will  develop  our  industries  and  the 
productivity  of  our  lands.  The  basis  of  our  prosperity 
is  in  our  industry  and  we  must  and  will  restore  that  first 
of  all. 

It  will  be  necessary  for  us  to  react  against  economic 
infiltration  from  Germany,  and  for  that  it  would  be  well  if 
our  Allies  would  lend  us  every  possible  aid  so  that  we 
will  not  be  obliged  to  return  to  our  pre-war  trade  with 
Germany.  Already  they  are  seeking  in  Germany  to  sell 
us  machinery  and  tools  which  we  seek  over  here,  offering 
all  kinds  of  inducements.  It  would  be  deplorable  if  we 
were  compelled  to  go  to  them. 

We  must  have  increased  perfection  in  studies  in  our 
high  schools  and  universities  to  prevent  German  influ- 
ence ever  again  coming  into  them.  We  are  very  thankful 
to  Mr.  Hoover  who  is  responsible  for  a  magnificent  gift 
for  the  development  of  scientific  studies  in  our  schools. 
He  gave  to  us  for  that  purpose  many  million  francs,  what 
remained  of  the  fund  for  the  Committee  for  the  Relief 
in  Belgium.  Mr.  Hoover  fed  our  bodies  when  we  needed 
nourishment,  and  now  he  feeds  our  minds.  Belgium  is 
determined  to  go  forward  in  all  lines  of  human  endeavor. 

Gentlemen,  I  have  answered  Mr.  Bedford's  questions 
only  in  a  brief  and  general  way,  but  I  believe  I  have  in 
some  degree  informed  you  of  the  sincerity  of  Belgium's 
plans  and  ambitions  for  the  advancement  by  close  coop- 
eration with  the  United  States  and  other  Allied  countries 
of  the  future  world  commerce  and  industrial  intercourse. 

Mr.  Chairman  and  Gentlemen,  I  thank  you. 

The  Chairman:  M.  Canon-Legrand,  we  are  all  greatly 
encouraged  and  enlightened  by  the  magnitude  of  what  has 
been  accomplished  by  your  glorious  country  since  peace 
was  declared.  It  was  to  be  expected  that  a  country  which 
had  borne  itself  with  such  heroism  during  the  strife  of 
war  should  turn  to  such  efficiency  in  the  arts  of  peace  and 
make  the  showing  that  you  have  stated,  and  I  am  sure 
that  we  of  America  will  consider  it  not  only  an  honor  but 
a  privilege  and  opportunity  to  help  your  further  progress 
to  the  best  of  our  ability. 


132        THE  INTERNATIONAL  TRADE  CONFERENCE 

As  indicating  the  desire  and  the  opportunity  for  greater 
cooperation  between  Belgium  and  the  United  States  to 
which  M.  Canon-Legrand  has  referred,  I  know  you  will 
be  interested  in  an  article  that  has  just  been  handed  to 
me,  which  I  have  been  asked  to  read : 

"When  the  King  of  the  Belgians  arrived  in  New  York 
his  first  visit  was  to  the  Belgian  colony.  In  a  speech 
there  he  expressed  a  wish  for  the  prosperity  of  the  Bel- 
gian colony,  and  to  the  representatives  of  the  Belgian- 
American  firms  established  in  this  country  since  the  war 
the  King  expressed  the  desire  to  see  them  grouped  to- 
gether in  one  body.  As  a  result  of  this,  in  consequence  of 
the  words  of  His  Majesty,  the  Belgian  Chamber  of  Com- 
merce has  been  created  within  a  few  days  in  the  United 
States,  to  be  known  under  the  name  of  the  Belgian  Cham- 
ber of  Commerce  of  the  United  States  of  America.  The 
King  in  a  telegram  addressed  to  the  organization  has  not 
only  congratulated  Belgian  business  men,  but  has  granted 
his  patronage  to  the  Belgian  Chamber  of  Commerce.  He 
will  receive  the  body  in  an  official  session  on  Sunday  night. 
The  Minister  of  Belgium,  M.  De  Marchienne,  has  accepted 
the  honorary  presidency  of  the  organization  and  the 
Belgian  Consul  General  to  the  United  States,  will  be  the 
Vice-President  of  Honor.  The  Belgian  Chamber  of  Com- 
merce is  taking  an  active  part  in  this  International  Con- 
gress and  is  represented  here  by  its  president,  and  also  by 
its  general  secretary." 

I  know  all  of  you  gentlemen  will  be  most  interested  in 
the  establishment  of  this  organization. 

Might  I  take  this  opportunity  also  to  read  a  letter  sent 
to  Mr.  Bedford  by  Mr.  Steven  C.  Mason,  president  of  the 
National  Association  of  Manufacturers: 

"To  Mr.  Alfred  C.  Bedford, 

"Chairman,  Executive  Committee, 

"International  Trade  Conference,  Atlantic  City. 

"MY  DEAR  SIR  : 

"I  beg  to  extend  to  you,  that  you  may,  if  you  deem  it 


THE  INTERNATIONAL  TRADE  CONFERENCE        133 

advisable,  express  to  the  representatives  of  the  over- 
seas countries  who  are  now  attending  the  International 
Trade  Conference,  the  hearty  good  wishes  of  our  organi- 
zation, and  further  that  you  will  express  to  your  guests 
our  sincere  desire  to  co-operate  in  every  possible  way  with 
the  business  object  of  the  mission. 

"To  this  end  we  offer  the  facilities  of  the  Association  of 
Manufacturers  of  the  United  States  of  America  and  par- 
ticularly those  of  the  foreign  trade  department  in  New 
York  City  and  our  municipality,  who  will  be  pleased  to 
establish  personal  contact  for  your  guests  with  manu- 
facturers throughout  the  country. 

"Very  truly  yours, 

"STEVEN  C.  MASON, 

"President." 


Address  by  Sir  Arthur  Shirley  Benn,  K.  B.  C.,  M.  P. 

On  Great  Britain. 

The  Chairman:  Sturdy  old  England !  Who  throughout 
the  world  that  has  been  familiar  with  its  steadfastness 
of  character,  its  indomitable  courage  and  persistence, 
ever  doubted  that  in  this  late  trouble  it  would  see  it 
through  to  the  bitter  end,  and  see  it  through  it  did ;  and 
who,  in  turn  would  doubt  that  with  its  splendid  record 
back  through  the  centuries,  of  progress,  energy  and  cour- 
age, it  would  likewise  quickly  take  up  the  task  of  recon- 
struction and  find  its  way  ?  And,  so,  already,  despite  the 
bitter  wounds  that  came  from  the  war,  Great  Britain  is 
once  more  pressing  forward  to  the  aid  of  all  of  her  late 
Allies  and  taking  up  the  burdens  which  she  left  off 
throughout  the  war  with  all  her  colonies  and  all  parts  of 
her  far-flung  empire.  I  know  the  story  of  what  has  al- 
ready been  accomplished  and  what  the  tasks  are  that  are 
still  left  to  be  undertaken  will  be  of  tremendous  interest 
to  you,  and  it  could  be  presented  in  no  better  form  than 
by  Sir  Arthur  Shirley  Benn,  the  Chairman  of  the  British 
delegation,  whom  I  now  take  pleasure  in  presenting  to 
you. 


134        THE  INTERNATIONAL  TRADE  CONFERENCE 

Sir  Arthur  said: 

Mr.  Chairman,  Ladies  and  Gentlemen:  I  have  been 
asked  to  make  a  short  address  on  the  after-the-war  inter- 
national problems  from  an  English  standpoint,  or  I  might 
say,  from  a  British  standpoint,  for  one  of  my  committee 
is  a  Scotchman,  and  he  very  much  dislikes  to  hear  of  Eng- 
land and  not  Britain. 

Gentlemen,  those  problems  will  have  to  be  dealt  with, 
but  if  the  Allies,  who  have  stood  together  in  the  war, 
stand  together  in  the  reconstruction  days,  there  is  no 
doubt  that  they  will  be  met  and  solved.  To  understand 
them  from  the  British  standpoint  I  wish,  with  your  per- 
mission, to  go  very  briefly  over  conditions  in  England 
before  the  war,  during  the  war,  and  now. 

In  1914  we  were  a  commercial,  industrial  people.  We 
did  not  believe  in  war  and  we  hoped  that  the  millenium 
had  come ;  we  hoped  that  we  would  no  more  see  guns  and 
swords,  airplanes  and  submarines  brought  forth  to  kill 
men.  We  thought  that  arbitration  treaties  would  be  the 
future  way  of  solving  the  difficulties  that  arose  between 
countries.  We  had  a  good  trade;  we  had  a  compara- 
tively small  national  debt,  some  six  hundred  and  forty 
millions.  We  were  not  overtaxed  and  we  were  on  good 
terms  with  every  country  in  the  world. 

When  August  came,  when  Germany  treated  her  treaties 
as  scraps  of  paper,  when  she  invaded  Belgium,  that  gal- 
lant country,  there  is  no  question  as  to  where  Great 
Britain  stood.  And  in  saying  that  may  I  refer  for  one 
moment  to  the  position  held  by  our  present  Ambassador 
from  England,  Lord  Grey,  then  Sir  Edward  Grey,  our 
Foreign  Minister?  In  those  days  I  belonged  to  the  con- 
servative party,  although  I  was  what  they  called  a  Tory 
democrat,  for  I  had  lived  out  here.  I  did  not  love  Sir 
Edward  Grey  for  his  politics,  but  I  loved  him  for  the 
stand  he  took  in  connection  with  the  war  and  for  the 
stand  he  continued  to  keep  during  the  war.  Prince 
Lichnowsky,  the  then  German  Ambassador  to  London, 
acknowledged  in  his  letters  that  Sir  Edward  Grey  had 


THE  INTERNATIONAL  TRADE  CONFERENCE        135 

done  everything  in  his  power  to  prevent  war  and  he  said 
that  the  simplicity  and  honesty  of  Sir  Edward  Grey's 
ways  secured  for  him  the  esteem  even  of  his  opponents, 
who  were  to  be  found  rather  in  the  sphere  of  home  affairs 
than  of  foreign  policies.  Lies  and  intrigues  are  equally 
repugnant  to  him.  That  was  the  man  who  was  our  For- 
eign Minister  and  who  did  his  duty  when  we  found 
ourselves  facing  the  Belgium  invader. 

Mr.  Asquith,  our  then  Prime  Minister,  stated  at  the 
Mansion  House  in  London  on  the  9th  day  of  November 
in  1914,  where  we  stood.  He  said: 

"We  shall  never  sheath  the  sword  until  Belgium  recov- 
ers in  full  all,  and  more  than  all,  that  she  has  sacrificed, 
and  until  France  is  adequately  secured  against  the  men- 
ace of  aggression,  until  the  rights  of  the  small  nation- 
alities of  Europe  are  placed  upon  an  unassailable  founda- 
tion, and  until  the  military  combination  of  Prussia  is 
wholly  and  finally  destroyed." 

Those  are  the  words  of  our  Prime  Minister.  We  had 
found  ourselves.  We  had  a  small  army,  250,000  men,  many 
of  them  in  the  furthermost  parts  of  the  Empire.  We  had 
some  200,000  reserves,  and  we  had  250,000  Territorials, 
state  troops,  men  who  were  learning  something  about  mil- 
itary affairs  and  had  put  in  some  drills.  Some  of  them, 
of  course,  were  good  soldiers  at  that  time.  They  all 
proved  afterward  that  the  mettle  was  there  and  that  they 
were  true  soldiers,  but  what  was  our  position  ?  We  could 
only  send  a  small  army,  so  small  that  the  Germans  talked 
of  it  as  a  "contemptible  little  army."  That  little  con- 
temptible army  knew  how  to  fight  and  knew  how  to  die. 
They  were  men  awakened,  righteous;  they  were  mag- 
nificent types  of  what  the  British  soldier  used  to  be  and 
is.  Lord  Kitchener  knew  that  we  had  to  raise  an  army. 
He  was  one  of  the  few  men  who  said  that  the  war  would 
certainly  last  four  years.  He  called  for  100,000  men. 
Some  people  said  afterward,  "Why  did  he  not  call  for 
more  ?"  The  answer  to  that  is  that  we  had  neither  cloth- 
ing, guns  nor  instructors. 

I  had  the  pleasure  of  addressing  some  of  our  men  in 


136        THE  INTERNATIONAL  TRADE  CONFERENCE 

1915,  who  were  armed  with  either  small  Japanese  guns  or 
with  sticks,  and  who  had  a  few  score  of  rifles  sent  down 
for  practice.  That  was  our  position.  We  could  have  got 
any  number  of  men,  because  when  you  put  before  the 
people  the  rights  and  wrongs,  when  you  showed  them  that 
they  were  fighting  for  the  preservation  of  civilization 
there  was  no  holding  back.  I  recollect  at  one  recruiting 
meeting  finding  two  men,  one  of  them  in  tears.  I  went 
up  to  him  and  said,  "What  is  the  matter?"  He  said, 
"They  won't  have  me."  I  said,  "Why?"  "Well,"  he  said, 
"I  have  not  got  a  tooth  in  my  upper  jaw."  Well,  there 
was  nothing  much  the  matter  with  the  man,  and  I  said, 
"Well,  how  do  you  eat  ?"  He  said,  ''Give  me  a  biscuit  and 
I  will  show  you  I  can  munch  it  quicker  than  any  man  in 
the  whole  audience." 

Well,  we  took  him.  I  said  I  would  be  responsible.  The 
next  day  there  was  a  little  fellow  who  lacked  one-half 
inch  in  height,  and  in  those  days  we  had  a  good  deal  of  red 
tape.  He  was  small,  but  a  fighter.  He  could  run  and  he 
could  jump,  and  I  told  them  to  take  him;  but  one  of  my 
red  tape  friends  who  was  near  him  heard  what  I  said,  and 
I  turned  and  said  to  him,  "Don't  you  think  I  am  right?" 
He  said,  "Yes,  but  where  the  blankety  blank  are  you  going 
to  put  the  accoutrements  ?"  I  always  believed  that  small 
men  could  stand  more  than  some  of  us  who  are  big.  I 
have  told  in  England  a  little  story  I  heard  in  Mobile  about 
the  difference  between  a  big  man  and  a  small  man. 
A  very  big  man  was  representing  in  Congress  one  of  the 
districts  and  he  had  for  an  opponent  a  very  short,  thin 
man.  They  had  joint  meetings,  and  at  one  of  the  meet- 
ings the  very  big  man  said,  "When  I  look  around  this  hall 
tonight  and  see  the  faces  of  men  who  have  been  my  sup- 
porters in  the  past  I  cannot  imagine  that  you  have  the 
slightest  intention  of  not  sending  me  back  to  Congress, 
and  I  think  so  all  the  more  when  I  look  at  my  friend  the 
Judge,  a  most  estimable  gentleman,  but  not  big  enough 
to  fill  my  place.  In  fact,  I  might  swallow  him  without 
hurting  him,  and  then  I  suppose  he  would  still  be  dear  in 
the  memory  of  some  of  you." 


THE  INTERNATIONAL  TRADE  CONFERENCE        137 

The  little  man  in  reply  said  he  was  surprised  to  find 
his  friend  had  not  been  big  enough  to  prevent  him  from 
descending  to  small  personalities.  He  said  he  was  not 
going  to  fight  with  him  but  simply  going  to  state,  and  he 
was  sure  his  audience  would  agree  with  him,  that  if  his 
opponent  did  swallow  him  whole  without  hurting  him  he 
would  have  a  darn  sight  more  brains  in  his  belly  than  he 
had  in  his  head. 

Ladies  and  Gentlemen,  to  go  back  to  the  serious  prob- 
lem in  England,  over  5,000,000  men  volunteered  for  the 
army  and  navy.  During  the  war  we  sent  into  the  army 
over  8,000,000  men,  men  who  had  not  been  trained,  like 
in  foreign  countries,  something  about  war,  men  who  came 
from  every  walk  in  every  class  of  life,  the  peer  and  the 
peasant,  the  merchant  and  mechanic,  the  man  of  leisure 
and  the  man  of  labor;  they  all  came  as  they  knew  their 
duty. 

Our  Colonies,  our  Empire,  or,  as  General  Smutts  says, 
our  Commonwealth  of  Nations ;  none  of  them  was  forced 
to  come  at  the  call  of  the  Motherland.  Every  one  of  them 
sent  its  money.  Over  a  million  men  came  from  the 
self-governing  colonies,  from  the  dependencies,  from 
India,  and  they  showed  the  blood  of  our  forefathers  was 
just  as  strong  in  their  veins,  no  matter  where  they  lived, 
as  if  they  had  lived  in  the  old  Motherland. 

We  lost  nearly  a  million  men,  and  not  old  men,  not  the 
young  unfledged  youth,  but  nearly  all  men  who  had 
reached  man's  estate.  Some  three  million  casualties, 
many  of  them  men  who  have  been  able  to  return  to  work ; 
many  of  them  men  who  have  to  do  work  to  prevent 
them  from  brooding  over  the  fact  that  they  have  been 
wounded  in  the  war ;  many  of  them  men  that  cannot  work 
and  who  will  have  to  be  supported  by  those  for  whom 
they  were  wounded.  We  have  a  great  task  in  our  pen- 
sions; we  have  a  great  task  in  finding  work  for  the 
maimed  and  wounded,  but  we  are  going  to  do  it.  Al- 
though our  army  was  small,  our  navy  was  the  navy  of 
old,  a  navy  that  fought.  The  personnel  was  added  to  by 
ten  times  the  number  that  was  in  it  when  the  war  broke 


138        THE  INTERNATIONAL  TRADE  CONFERENCE 

out.  They  protected  our  routes,  they  protected  our 
shores,  and  I  defy  anybody  to  challenge  me  when 
I  say  that  the  British  Navy  in  the  days  of 
peace  has  upheld  the  highways  of  the  ocean  for 
the  benefit  of  mankind.  But,  Ladies  and  Gentlemen,  it 
was  not  the  navy  only,  but  it  was  our  mercantile  marine. 
I  have  never  known  a  vessel  that  refused  to  go  out  for 
fear  of  submarines,  or  a  crew  that  declined,  or  men  who 
declined.  I  have  known  of  a  case  of  a  captain  who  was 
three  times  torpedoed,  and  when  I  saw  him  in  port  he 
said,  "Oh,  I  have  just  got  another  ship;  I  am  off  again  to- 
morrow," and  he  was  perfectly  delighted. 

Well,  as  I  said  a  few  minutes  ago,  although  we  could  get 
the  men  we  did  not  have  the  guns  and  did  not  have  the 
munitions,  and  we  in  England  thank  America  for  what 
she  did  for  us  in  that  way  before  she  came  herself  into 
the  war.  We  recognize  it  and  we  do  not  forget  it.  Ir 
1915  when  it  was  discovered  at  the  front  the  enormous 
amount  of  munitions  that  were  necessary,  we  had  to  turn 
around  and  start  our  munitions  in  England  apart  from  the 
old  army  regulations  and  apart  from  Woolwich  and  places 
like  that,  and  when  the  work  was  started  the  question 
was,  how  to  get  the  necessary  men  to  do  the  work.  I  was 
sent  down  to  the  Fifth  Army  to  try  and  get  from  it  skilled 
men.  I  addressed  battalion  after  battalion.  I  told  the 
men  that  they  were  only  in  the  army  to  do  their  bit  for 
their  country  and  that  I  was  instructed  to  tell  them  that 
if  they  were  skilled  men  capable  of  making  munitions 
that  the  bit  they  could  do  would  be  better  done  back  at 
the  workshop  than  in  the  army.  But  I  had  to  promise 
those  men  that  they  would  still  be  soldiers,  that  they 
would  not  be  taken  off  the  roster  of  the  regiment  and 
that  when  they  had  taught  other  men  to  take  their  places 
in  the  factory  they  would  be  able  to  go  back  to  their  regi- 
ment. That  was  a  very  interesting  thing,  because  the 
better  the  workman  the  better  the  soldier  and  the  officers 
did  not  want  to  lose  them,  and  they  did  not  want  to  go. 
The  ones  that  did  want  to  go,  generally  speaking,  were 


THE  INTERNATIONAL  TRADE  CONFERENCE        139 

men  who  were  not  particularly  good,  either  in  the  work- 
shop or  in  the  army. 

Well,  we  got  those  men  back,  and  then  came  the  ques- 
tion, how  are  we  going  to  get  the  unskilled  labor  ?  We  got 
the  youngsters,  and  then  we  got  the  women.  The  work 
that  women  did  during  the  war  would  fill  a  history;  it 
was  perfectly  magnificent.  You  know  what  your  women 
did  here.  We  know  that  ours  did  just  as  much,  if  not 
more.  They  came  from  all  classes  and  they  worked  mag- 
nificently. I  saw  a  man  once  in  a  big  yard,  who  was  very 
much  upset  at  having  women  in  his  yard  at  first,  and  I 
said  to  him,  ''Well,  what  do  you  find?"  "Well,"  he  said, 
"there  is  one  of  my  biggest  machines,  and  all  I  can  say 
is  that  that  woman  is  getting  one-and-a-half  times  more 
from  it  than  one  of  my  best-paid  men  got  when  he  was  at 
it." 

The  work  that  the  women  did  went  far  toward  winning 
the  war.  And  while  I  always  like  to  see  a  lady,  I  take  my 
hat  off  to  all  of  them  and  the  work  they  did  during  the 
war. 

We  have  now  got  to  go  into  reconstruction.  We  have 
promised  a  good  many  things  to  our  workmen.  When 
those  women  went  in  and  worked,  when  the  young  men 
went  in  and  worked,  our  labor  unions  had  been  working 
for  years  and  years  to  get  privileges  and  regulations.  That 
we  told  them  had  to  be  done  away  with  during  the  war, 
and  our  men  were  patriotic  enough  to  say,  "All,  right; 
brush  them  aside,  provided  when  the  war  is  over  we  shall 
have  them  again,"  and  we  promised  they  should  have 
them,  and  they  are  going  to  have  them.  But  I  have  not 
the  slightest  fear  that  those  men  will  not  recognize  the 
conditions  as  they  exist  today  and  that  if  the  regulations 
should  lead  to  what  they  call  the  Caranni  system,  or  to 
the  reduction  of  output,  I  am  confident  they  will  not  be 
heeded.  Our  men  know ;  I  have  heard  one  of  our  labor  so- 
ciety leaders  state  that  they  are  now  endeavoring  to  im- 
press upon  the  men  that  if  they  get  shorter  hours  they 
must  do  more  work  and  must  allow  the  use  of  more  ma- 
chinery, and  I  feel  perfectly  convinced  that  the  common 


140        THE  INTERNATIONAL  TRADE  CONFERENCE 

sense  of  our  people  will  justify  the  alteration  in  any  rules 
that  will  prevent  the  extra  production.  We  have  promised 
those  men  that  they  will  have  better  housing.  That  all 
means  money.  We  were  in  a  peculiar  position.  There 
was  a  shortage  of  houses  when  the  war  started.  We  used 
to  build  some  eighty  odd  thousand  houses  every  year ;  we 
have  built  virtually  none  during  the  war.  We  have  a 
shortage  of  four  hundred  thousand  or  five  hundred  thou- 
sand houses,  and  we  have  a  larger  number  of  young  men 
needing  homes  of  their  own,  men  who  married  when  they 
were  going  to  war  and  who  have  come  back  and  who 
have  got  a  wife  and  perhaps  a  child,  who  cannot  go  and 
live  in  one  room;  who  must  have  houses,  and  we  have  a 
big  problem  to  solve  in  getting  those  houses  built  at  as 
early  a  date  as  possible. 

We  have  gone  in  for  a  new  education,  and  we  realize, 
as  you  have  realized,  and  as  you  have  shown,  that  the 
very  best  thing  we  can  do  is  to  educate  everybody  in  our 
land.  Money  spent  in  education  is  never  money  wasted. 

Ladies  and  Gentlemen,  we  have  also  gone  in  for  better 
health  conditions,  and  we  are  doing  our  best  to  see  that 
those  men  who  fought  for  us,  who  fought  for  the  Allies, 
who  fought  for  civilization,  will  have  a  better  and  a 
brighter  life  to  live  than  they  would  have  had  in  olden 
days.  If  we  are  going  to  do  that  we  have  got  to  work, 
we  have  got  to  manufacture  and  we  have  got  to  find 
markets  for  the  goods  we  manufacture.  Some  of  our  best 
customers  will  not  be  likely  to  take  as  much  as  they  used 
to.  Germany,  with  whom  we  had  a  large  trade  before  the 
war,  I  do  not  think  will  be  likely  to  buy  very  much. 
Some  of  the  countries  in  the  east  will  be  supplied  to  a  cer- 
tain extent  by  countries  that  are  lying  nearer.  Take  for 
argument's  sake  that  little  isle  that  stood  by  all  of  us 
during  the  war,  that  was  loyal  to  us,  Japan.  Japan  is 
nearer  to  China,  she  is  nearer  to  India,  and  the  wages 
in  Japan  are  much  smaller  than  they  are  here  or  in  Eng- 
land. I  heard  a  gentleman  from  China  in  Paris,  at  a  large 
meeting,  state  that  the  objection  to  the  man  from  the 
East  was  not  his  color,  but  economic,  because  he  could 


THE  INTERNATIONAL  TRADE  CONFERENCE        141 

live  on  so  much  less  and  could  cut  into  our  trade.  Well, 
gentlemen,  that  is  one  of  the  problems  that  will  have  to 
be  solved;  but  I  am  quite  confident  that  we,  you,  and  all 
of  us  will  solve  that  question,  because  there  is  room  in  the 
world  for  all  of  us. 

Well,  then,  take  the  Allies.  We  are  all  friends;  we 
know  each  other.  We  have  stood  by  each  other  during 
the  war.  I  do  not  know  if  you  know  a  description  that 
was  once  given  by  a  small  boy  as  to  what  a  friend  was. 
When  he  was  asked,  his  answer  was,  "Somebody  you 
know  very  well  indeed  and  still  like."  Well,  I  think  the 
Allies  all  like  each  other  and  all  mean  to  stand  together; 
but  the  countries  that  have  been  devastated  will  have  to 
be  reconstructed.  I  have  seen  the  devastation  in  Bel- 
gium; I  have  seen  it  in  France;  I  have  seen  it  in  Italy. 
In  England  we  have  not  had  much,  although  we  have  lost 
a  great  deal  more  than  the  papers  ever  spoke  of,  by  air 
raids.  But  when  you  look  at  the  devastation  in  those 
countries,  when  you  realize  how  wanton  it  was,  how  ab- 
solutely uncivilized  it  was,  you  cannot  help  feeling  the 
deepest  sympathy  with  the  residents  of  those  countries, 
and  my  sincere  hope  is  that  this  great  country  of  Amer- 
ica and  that  those  of  the  Allies  who  are  able  will  all  do 
their  very  best  to  see  that  those  countries  that  have  been 
devastated  are  put  upon  their  feet  again.  They  will  be 
our  customers,  they  will  be  people  who  will  sell  to  us, 
people  to  whom  we  will  sell,  who  will  trade  with  us  in  the 
future,  and  the  sooner  they  are  reconstructed  the  better 
it  will  be  for  commerce  the  world  over,  and  I  am  sure  you 
will  all  agree  with  me  about  that. 

I  should  like  to  say  just  one  word  more  on  the  question 
of  the  British  and  American  people.  There  is  a  tie  be- 
tween us,  an  almost  indescribable  tie,  but  when  we  realize 
that  for  nearly  a  hundred  years  there  has  never  been  a 
soldier  or  a  guard  along  that  long  frontier  between  the 
United  States  and  Canada,  we  can  realize  how  true  our 
friendship  is.  To  go  back  to  1823,  Jefferson,  who  could 
never  have  been  said  to  have  been  very  much  in  love  with 
England,  when  asked  by  President  Monroe  what  his 


142        THE  INTERNATIONAL  TRADE  CONFERENCE 

opinion  was  as  to  the  advice  which  was  given  by  Mr.  Can- 
ning the  British  Foreign  Minister,  to  Mr.  Russeau,  the 
American  Minister  in  London,  in  regard  to  the  Monroe 
Doctrine,  and  Mr.  Canning  suggested  to  Mr.  Russeau  that 
a  doctrine  such  as  the  Monore  Doctrine  should  be  issued 
by  America,  President  Monroe  wrote  to  Mr.  Jefferson  and 
asked  his  opinion.  I  have  always  kept  and  loved  his  let- 
ter. I  think  it  was  of  the  23d  of  October.  In  it  he  said : 
"One  country  more  than  any  other  can  insure  us  in  our 
purpose.  She  now  offers  to  lead,  aid,  and  accompany  us  in 
it.  By  accepting  her  proposition  we  detach  her  from 
the  bans  and  we  bring  her  mighty  weight  into  the  scale 
of  free  government.  We  emancipate  at  one  moment  a 
continent  which  would  otherwise  linger  for  years  in  dif- 
ficulties and  debts.  Great  Britain  is  the  country  that  can 
do  us  the  most  harm  of  any  or  all  on  earth,  but  with  her 
on  our  side  we  need  not  fear  the  world.  It  should  there- 
fore be  our  endeavor  to  cherish  feelings  of  the  closest 
friendship,  and  I  know  of  no  better  way  to  accomplish  this 
than  by  finding  ourselves  fighting  once  more  side  by  side 


in  a  common  cause." 


Ladies  and  Gentlemen,  you  and  we  and  our  Allies  have 
all  been  fighting  side  by  side  in  the  same  cause,  and  I  be- 
lieve it  will  do  more  to  cement  the  bonds  of  friendship 
that  exist  between  us  today  than  anything  else  in  this 
world.  I  thank  you. 


Address  of  Prof.  Bernardo  Attolico, 

On  Italy. 

The  Chairman:  We  always  thought  of  her  before  the 
war  as  Sunny  Italy,  the  land  of  sunshine,  of  art,  and 
flowers,  and  culture  and  portraiture,  and  during  this  ter- 
rific struggle  she  has  been  a  competitor  in  gallantry  with 
her  allies  and  associates  in  the  war,  with  a  record  of 
heroism  and  accomplishment  that  has  added  another  bril- 


THE  INTERNATIONAL  TRADE  CONFERENCE        143 

liant  page  to  the  history  of  the  world.  Her  skies  are 
clouded  now  as  the  result  of  the  devastation  and  disaster 
brought  by  war,  but  with  the  still  indomitable  bravery 
and  persistence  with  which  she  fought  the  way  from  the 
mountain  tops  down  the  valleys  during  that  struggle,  she 
is  taking  up  the  challenge  of  reconstruction  as  are  the 
other  allied  countries,  and  making  splendid  progress.  We 
are  going  to  have  the  privilege  now  of  listening  to  a  dis- 
tinguished representative  of  that  country,  Commander 
Professor  Bernardo  Attolico,  Director  General  of  Eco- 
nomics of  the  Board  of  Commerce  of  Italy,  specialist  in 
economics,  and  member  of  the  Economic  Council  of  this 
Conference,  and  Director  of  the  Economic  Bureau  of  the 
League  of  Nations,  and  a  specialist  on  economic  questions. 
He  knows  America  well,  and  he  knows  well  his  own  coun- 
try and  is  eminently  fitted  to  place  before  you  a  story  that 
I  know  you  will  find  of  great  interest.  It  is  a  pleasure  to 
introduce  Professor  Bernardo  Attolico. 

Professor  Attolico  said: 

Mr.  Chairman,  Ladies  and  Gentlemen:  Italy  comes 
last  in  the  expose  of  her  conditions,  which,  however,  I  am 
sure  you  appreciate,  deserve  very  careful,  and  in  some  re- 
spects, quite  special,  consideration.  The  task  which  the 
Chairman  of  our  Delegation,  Engineer  Quartieri,  has  en- 
trusted to  me  is  the  following:  To  give  you  an  idea  of 
what  we  need,  why  we  need  it,  and  why  it  is  desirable 
and  to  our  mutual  advantage  that  you  should  help  us  in 
meeting  those  needs. 

What  we  require  may  be  told  in  a  few  figures.  But 
figures  are  not  in  themselves  sufficiently  explicit.  First, 
let  me  show  you  the  general  lines  of  our  economic  struc- 
ture. Italy  has  always  been  a  great  importer  of  raw  ma- 
terials, and  an  exporter  of  manfactured  goods,  together 
with  certain  products  of  the  soil.  But,  even  in  normal 
times — and  let  me  recall  that  at  the  eve  of  our  war  very 
few  countries  in  Europe  offered  a  sounder  financial  posi- 
tion than  Italy — our  imports  exceeded  our  exports  by  a 
considerable  amount,  the  balance  being  re-established  by : 


144        THE  INTERNATIONAL  TRADE  CONFERENCE 

(a)  Emigration ;  (b)  The  tourist  trade,  which  represented 
a  yearly  income  of  about  $300,000.  The  destruction  and 
compression  of  our  commerce  during  the  war  was  per- 
haps— as  the  result  of  inevitable  causes — more  violent 
than  in  any  other  of  the  principal  allied  countries. 

The  tourist  trade  was  of  course  entirely  paralyzed  by 
war.  Nor  could  Italy  receive  any  compensation  from  that 
new  and  sublime  form  of  travel  to  which  the  war  gave 
rise,  a  movement  whose  effect  in  the  financial  field  proved 
precious  as  it  was  valuable  and  decisive  in  the  military — 
I  refer  to  the  expeditionary  forces  of  our  most  gallant 
allies. 

Emigration  had  also  quite  naturally  to  cease.  We  then 
lost  the  benefit  of  the  remittances  from  between  half  a 
million  and  one  million  men  who  would  in  normal  circum- 
stances have  left  the  country  annually.  Not  only  this, 
but  numbers  of  our  people,  who  were  already  abroad,  had 
to  return — and  they  came  most  willingly,  to  join  in  the 
army  and  fight  for  the  common  cause.  This,  of  course, 
represented  an  additional  loss  to  our  national  economy. 
No  other  country  sustained  a  loss  of  this  kind.  Many  of 
our  exports  also  had  necessarily  to  suffer  from  the  war, 
being  in  certain  cases  restricted  to  the  verge  of  complete 
suppression.  As  you  are  aware,  no  other  country,  perhaps, 
was  so  dependent  on  the  German  and  Austro-Hungarian 
markets  for  the  selling  of  their  goods  as  Italy.  This  trade 
was  wiped  out  altogether  by  the  war,  without  any  possi- 
bility of  finding  adequate  compensation  in  allied  or  neu- 
tral markets. 

Navigation  during  the  war  was  always  more  danger- 
ous in  the  Mediterranean  than  elsewhere.  Our  national 
tonnage — in  itself  very  scanty — was  all  commandeered 
for  war  purposes,  while  the  tonnage  lent  us  by  our  Allies 
was  hardly  expected  to  be  available  for  commercial  pur- 
poses. This  situation  reacted  both  directly  and  indirectly 
on  our  export  trade — directly  owing  to  the  fewer  oppor- 
tunities of  overseas  shipments;  indirectly  through  the 
lesser  importations  of  raw  materials,  which  allowed  of  no 
surplus  for  export  purposes.  These  things  in  themselves 


THE  INTERNATIONAL  TRADE  CONFERENCE        145 

were  of  course  sufficient  to  cripple  and  in  most  cases  to 
suppress  our  export  trade.  Through  the  lack  of  raw  ma- 
terial, transport  facilities,  etc.,  the  export  of  cotton  and 
woolen  goods  which  had  been  very  flourishing,  had  to  be 
practically  abolished.  Then  again,  one  large  group  of  our 
export  had  to  be  sacrificed  altogether  because  we  needed 
it  ourselves.  I  refer  to  foodstuffs,  such  as  macaroni, 
cheese,  olive  oil,  early  vegetables,  sausages,  etc.,  articles 
which  used  to  find  a  very  good  market  also  in  the  United 
States.  On  the  contrary,  we  had  to  import  most  of  these 
articles  which  formerly  we  used  to  export.  Even  oranges 
and  lemons  were  handicapped  by  transport  difficulties, 
while  owing  to  the  exigencies  of  the  blockade  we  could  not 
extend  their  sale  in  neutral  European  countries. 

Other  articles,  and  very  important  ones,  such  as  silks 
and  silk  manufactures,  gloves,  flowers,  were  necessarily 
sacrificed.  Allied  countries  had  to  restrict  importation  of 
such  goods  as  being  a  luxury ;  while  for  blockade  reasons 
again  we  could  not  extend  their  market  in  Europe.  Other 
articles  were  sacrificed  because  they  were  too  bulky,  or 
for  other  reasons,  such  as  marbles,  furniture,  straw  plaits, 
frames,  etc. 

I  say  and  I  repeat  most  emphatically,  no  other  coun- 
try, relatively  speaking,  suffered  so  severely  in  its  export 
trade  as  Italy  did.  I  do  not  say  this  in  any  spirit  of  com- 
plaint, because  we  are  proud  of  the  sacrifices  we  made; 
but  merely  in  order  to  point  out  that  the  greater  the  com- 
pression of  our  commerce  during  the  war,  the  wider  also 
are  the  margin  and  the  possibilities  of  our  recovery. 

Let  us  now  take  a  glance  at  the  future. 

Gentlemen,  every  man  who  feels  the  ties  of  citizenship 
to  his  own  country  is  proud  of  it  and  has  faith  in  it.  Ital- 
ians have  long-standing  traditions  of  national  pride.  Per- 
haps no  man  in  the  world  can  affirm  his  citizenship  with 
greater  pride  than  the  citizen  of  old  Rome  when  he  quali- 
fied himself  "civis  Romanus."  Italians  of  the  younger 
generation  to  which,  for  a  few  years  longer,  I  still  belong, 
feel  very  much  the  same  way.  I  may  be  inclined  there- 
fore to  overstate  Italian  possibilities  and  resources.  But 


146        THE  INTERNATIONAL  TRADE  CONFERENCE 

I  shall  try  not  to  do  so.  I  hope  the  international  habit 
and  frame  of  mind  will  assist  me  in  this,  and,  at  any  rate, 
I  only  wish  to  place  before  you  a  few  bare  facts,  which  I 
trust  will  be  convincing. 

I  must  again  refer  to  the  factors  of  our  export  trade  in 
order  to  show  you  what  are  its  prospects. 

Silk  and  silk  manufacture  rank  first  in  order  of  im- 
portance. Italian  silks  are  not  cheap,  but  they  are  very 
good.  With  the  raising  of  the  blockade  and  the  removal 
of  other  artificial  barriers,  they  will  soon  find  their  full 
market  again.  I  remember  an  Italian  friend  of  mine, 
not  very  familiar  with  commerce,  going  from  Paris  to 
London  on  business,  and  wishing  to  buy  something  there 
for  his  wife,  he  asked  for  silk  stockings.  Those  offered 
him  at  first,  Japanese  perhaps,  did  not  satisfy  him.  He 
was  next  shown  some  of  the  French  manufacture,  but  did 
not  wish  to  buy  French  stockings  in  London  and  carry 
them  back  to  Paris.  He  asked  to  be  shown  something 
better.  The  salesman  apologized,  explaining,  "I  haven't 
any  Italian  stockings." 

Next,  let  us  glance  at  cotton  and  cotton  manufactures. 
In  pre-war  time  we  used  to  import  over  300  million  lire 
of  raw  cotton.  We  repaid  this  debt  in  full  with  the  export 
of  only  40  per  cent  of  our  manufactured  products.  Then 
there  are  markets  of  the  Mediterranean  Basin,  with  which 
we,  more  than  any  one,  perhaps,  are  familiar.  These  are 
capable  of  great  expansion.  There  is  a  great  future 
there.  We  have  made  a  specialty  of  certain  cheap  goods 
which  are  in  great  request  in  neighboring  and  distant 
markets.  The  same  can  be  said  for  woolen  goods,  felt  and 
straw  hats,  caps,  etc.  Many  of  the  British  gloves  you 
buy  in  America  are  Italian  and  originally  come  from 
Naples. 

The  revival  of  normal  communications  throughout  the 
world  will  gradually  bring  into  the  market  all  sorts  of 
merchandise  of  which  the  trade  has  been  crippled  by 
war.  Even  the  improvement  of  inland  railroad  communi- 
cations will  contribute  to  this  end.  No  one  has  properly 
appreciated  what  a  tremendous  handicap  the  geographical 


THE  INTERNATIONAL  TRADE  CONFERENCE        147 

configuration  of  Italy  has  been  from  the  point  of  view  of 
railroad  communications.  The  Adriatic  was  closed  to 
navigation.  Coastal  sea  traffic  was  suspended  owing  to 
the  submarine  menace.  Our  railroads,  therefore,  had  to 
take  over  the  whole  burden.  On  top  of  this,  the  entire 
movement  of  troops  and  military  supplies  was  of  course 
concentrated  in  the  north,  and  this  tended  automatically 
to  cut  the  south  off  from  railroad  communications.  Many 
goods  were  available  for  marketing  and  had  just  to  lie 
where  they  were,  and  in  many  cases  were  wasted.  All 
this  is  gradually  setting  itself  right. 

Our  agricultural  produce  which,  at  pre-war  prices,  rep- 
resented a  yearly  income  of  about  six  and  a  half  billions, 
will  benefit  by  the  return  to  normal  conditions.  Grapes, 
early  vegetables,  oranges  and  lemons  will  again  find  their 
market  in  Central  Europe.  Perhaps  we  shall  have  some 
new  markets  for  them;  even  during  the  war  we  made  a 
few  odd  experiments  in  this  direction,  sending  grapes  by 
rail  to  England.  War  conditions  would  not  allow  us  to 
follow  this  up,  but  the  experiment  will  now  be  resumed. 

Certain  markets  for  certain  goods — macaroni,  for  in- 
stance— are,  of  course,  lost.  But,  believe  me,  they  are  not 
lost  for  good.  Now,  of  course,  Italian  macaroni  is  made 
in  the  United  States.  But  the  war  has  taught  many 
people,  who  never  ate  it  before,  to  eat  macaroni,  and  there 
is  room  in  the  world  for  spaghetti  of  all  nationalities. 
Especially  when  freight  rates  level  down,  you  will  not 
compete  with  us  in  the  European  market  for  articles 
of  this  kind.  And  then,  we  shall  turn  out  some  new 
specialties  and  export  them  again  to  you. 

It  is  only  too  true  that  we  cannot  import  any  more  of 
our  Chianti  wine  to  the  States.  But  in  compensation,  you 
will  drink  more  orangeades  than  formerly,  and  use  more 
of  our  oranges.  You  may  even  find  it  convenient  to  man- 
ufacture grape  juice  in  Italy  from  Italian  grapes.  And 
then,  we  have  plenty  of  good  mineral  waters  to  send  you. 
Some  of  them  are  patriotic  waters,  as  they  belong  to  the 
Trentino,  and  lastly,  if  you  still  stubbornly  want  our 


148        THE  INTERNATIONAL  TRADE  CONFERENCE 

Chianti — you  can  take  a  trip  to  Italy  and  spend  a  few  of 
your  dollars  over  there ! 

Let  us  get  on  with  our  general  survey.  What  about 
the  tourist  trade?  It  will  not  only  be  resumed,  but  ex- 
tended. I  wonder  whether  you  appreciate  the  fact  that 
with  our  new  boundaries,  restored  to  their  natural  limits, 
especially  on  the  Trentino  side,  some  of  the  most  beautiful 
spots  in  the  world  have  come  back  to  us — places  which  can 
very  well  compete  with  the  finest  summer  and  winter  re- 
sorts in  Europe,  and  which  already  have  quite  a  world 
clientele. 

Our  great  national  inheritance  of  art  treasures,  thanks 
to  some  legitimate  restitutions  which  have  been  secured 
to  us  by  the  Peace  Treaty,  has  been  immensely  enriched. 
The  new  provinces,  especially  Trento,  bring  with  them 
also  a  most  interesting  contribution  in  the  lace-making  in- 
dustries. And  if  the  Trento  laces  become  a  la  mode, 
gentlemen,  you  will  have  to  buy  them  for  your  wives  and 
daughters. 

What  about  emigration  ?  Emigration  is  a  normal  char- 
acteristic of  Italian  economic  life.  It  will  be  resumed. 
If  certain  markets  cannot  receive  our  emigrants  in  great 
numbers  there  are  others  which  will  require  them  more 
than  ever  before.  Our  French  colleagues  can  tell  you 
that. 

So  far,  I  have  spoken  mainly  about  the  old  resources; 
but  there  are  new  ones  to  be  reckoned  with. 

Just  now  I  was  talking  of  emigration.  In  the  future 
Italy  will  benefit  not  only  from  our  own  emigrants,  but 
also  from  emigrants  of  other  nationalities.  As  a  conse- 
quence of  the  war  emigration  from  eastern  Europe  will 
certainly  develop  substantially  and  steadily.  Whether 
the  stream  of  emigration  will  go  to  North  or  South  Amer- 
ica is  immaterial.  Geography  is  there  to  show  that  once 
Bremen,  Hamburg,  and  other  German  ports,  are  no  longer 
protected  by  the  artificial  preferential  tariffs  which  Ger- 
many was  allowed  to  enjoy  before  the  war.  Italy  is  bound 
to  become  the  greatest  transit  country  in  Europe  for 
people  going  from  east  to  west.  The  same  may  be  said 


THE  INTERNATIONAL  TRADE  CONFERENCE        149 

for  goods  traffic  in  both  directions.  Italy,  if  only  freedom 
is  guaranteed,  will  become  the  great  entrepot  of  eastern 
Europe. 

Our  own  export  trade  will  certainly  take  a  proper 
share — if  not  a  predominant  share — of  ex-German  and 
Austrian  commerce  in  the  Levant.  This  is  bound  to 
happen. 

The  incredible  privations  which  we  endured  during  the 
war  owing  to  lack  of  fuel  have  taught  us  the  imperative 
necessity  of  developing  our  water-power  resources.  These 
can  be  more  than  trebled.  We  have  already  made  a  good 
start  in  this  direction. 

And  it  may  perhaps  surprise  you  to  learn  that  we  are 
not  developing,  but  creating,  water  power  in  the  south, 
where  there  is  no  water. 

We  already  have  an  artificial  lake  in  Muru  Lucano,  Be- 
silicata,  between  Bari  and  Naples.  Far  bigger  works,  of 
the  same  kind,  have  been  planned  out  for  Calabria  and 
Sardinia.  You  will  hear  more  about  these  because  we 
want  the  help  of  your  machinery  for  them. 

The  transportation  of  war  industries  in  Italy,  as  else- 
where, is  certainly  fraught  with  difficulties.  But  let  me 
say  that  in  this  respect  we  now  enjoy  the  benefits  of  the 
greater  privations  which,  from  inevitable  causes,  we  had 
to  endure  during  the  war. 

The  acute  submarine  menace,  longer  distance,  cost  of 
freight,  etc.,  not  only  prevented — generally  speaking — 
Italy  from  becoming  a  great  manufacturing  emporium  for 
the  Allies,  but  even  rendered  it  impossible  for  her  fully 
to  supply  her  own  needs  in  the  way  of  war  material. 

Consequently,  our  war  factories  were,  comparatively 
speaking,  less  numerous  than  in  other  Allied  countries. 
This  now  diminishes  our  difficulties  of  transition  and 
transformation.  On  the  other  hand,  what  the  war  has 
created  in  Italy,  can  stand  the  test  of  any  comparisons. 
I  need  only  mention  here  the  Ansaldo  works,  the  Lliva, 
the  Fla.  Our  automobile  industry  is  one  of  the  best  in 
the  world.  Our  chemical  manufacturing  industry  is  now 
able,  generally  speaking,  to  supply  the  entire  needs  of 


150        THE  INTERNATIONAL  TRADE  CONFERENCE 

Italy.  With  the  necessary  financial  assistance,  it  will 
perhaps  affirm  itself  on  other  markets.  Numerous  small 
industries  have  been  born  during  the  war  which  emanci- 
pate our  country  from  similar  industries  in  Germany. 

What  I  have  said,  gentlemen,  about  Italian  resources, 
does  not  imply  that  we  do  not  stand  in  need  of  any  help. 
We  do  need  help,  though  only  for  a  time,  which  we  trust 
will  be  short. 

What  do  we  need?  Foodstuff's  first  of  all.  The  chief 
item,  of  course,  being  cereals,  particularly  wheat.  The 
Italian  is  a  very  decent  sort  of  fellow,  but  on  one  con- 
dition, that  he  may  have  his  loaf  and  his  dish  of  paste. 
Everybody,  the  world  over,  eats  bread,  but  there  is  no 
country  in  which  the  staple  diet  of  the  people  is  based 
so  pre-eminently  on  cereals — either  in  the  form  of  bread 
or  macaroni,  polenta  or  minestrone — as  in  Italy.  The 
consumption  of  cereals  has  increased  of  recent  years  in 
ratio  to  the  decreasing  availability  of  other  supplies,  such 
as  meat,  cheese,  sugar,  etc.  Bread  and  paste,  compara- 
tively speaking,  are  much  the  cheapest  food  of  all.  People 
therefore  take  to  them  the  more  willingly. 

This  year  we  had  a  poorer  wheat  crop  than  last  year. 
The  drouth  was  awful.  On  the  other  hand,  we  expect 
a  fall  in  consumption  as  the  result  of  demobilization. 
This  means  that  our  import  requirements  this  year  will 
equal  the  actual  importation  of  last  year — that  is  to  say, 
3,000,000  tons. 

Of  these  3,000,000  tons,  at  least  2,000,000  will  have  to 
come  from  the  United  States.  This  is  quite  an  excep- 
tional quantity  on  the  pre-war  basis,  but  until  Russia  and 
Roumania  are  again  in  a  position  to  give  us  wheat  as  they 
did  before  the  war,  we  must  have  recourse  mainly  to  the 
United  States. 

In  a  year  or  so  things  will  be  changed,  and  we  may  de- 
crease this  quantity  by  one-half.  I  am  not  going  to  sug- 
gest that  Italy  shall  provide  for  her  full  requirements  by 
extending  the  home  cultivation  of  cereals.  This  might 
prove  to  be  at  the  expense  of  more  profitable  crops,  and 


THE  INTERNATIONAL  TRADE  CONFERENCE        151 

consequently  a  fatal  mistake.  But  we  shall  certainly 
improve  our  production  by  intensive  culture,  etc. 

In  this  regard,  however,  as  in  other  cases,  I  deprecate 
any  policy  which,  with  a  view  to  rendering  each  country 
self-supporting,  would  destroy  foreign  commerce.  We 
should  be  going  back  to  an  economy  a  la  Robinson  Crusoe. 
This  would  not  be  progress,  but  retrogression ;  not  the  in- 
creasing, but  the  decreasing  of  wealth. 

Next,  we  need  frozen  meat,  pork  products,  butter  and 
cheese,  and  condensed  milk.  All  these  imports  are  of  an 
exceptional  character.  We  never  used  to  import  them  in 
any  appreciable  quantity,  while  we  used  to  export  some 
of  them  on  a  fairly  big  scale.  We  need  to  import  them 
now  as  the  result  of  the  great  reduction  of  our  live  stock 
caused  by  the  war.  The  situation  was  most  acute  last 
year  when  Italy  ate  meat  practically  once  a  week. 

Now,  however,  the  worst  is  over.  The  recent  census 
has  revealed  the  astonishing  fact  that  the  number  of  our 
heads  of  cattle  this  year  is  actually  greater  than  it  was 
before  the  war.  This  has  been  brought  about  in  the 
course  of  a  single  year  by  means  of  the  very  real  priva- 
tions which  we  imposed  on  ourselves  during  the  last  24 
months.  There  is,  of  course,  still  an  enormous  difference 
in  the  weight  of  our  cattle,  but  at  any  rate  the  improved 
situation  is  indicative  of  that  spirit  of  determination 
which  we  bring  to  the  solution  of  our  problems. 

As  I  said  before,  these  requirements  are  temporary. 
American  goods,  however,  prove  to  be  rather  sticky. 
Once  they  have  been  introduced  somewhere  they  remain. 
I  am  sure,  therefore,  that  your  pork  products,  canned 
meats  and  such  goods,  will  make  substantial  progress  in 
Italy  and  find  permanent  favor  there. 

Apart  from  food,  we  need  from  you  certain  raw  mate- 
rials, as  for  instance,  cotton,  metals  and  tobacco — prod- 
ucts which  we  always  imported  from  abroad. 

These  items  do  not  represent  any  innovation  and  they 
are  required  for  very  profitable  industries.  The  tobacco, 
for  instance,  yields  to  the  State  one  billion  lire  per  year. 

There  are,  however,  a  few  other  products  which  repre- 


152        THE  INTERNATIONAL  TRADE  CONFERENCE 

sent  new  requirements  dependent  on  new  circumstances. 
I  refer  first  of  all  to  coal,  and  in  conjunction  with  it,  to 
fuel  oils. 

The  torments  and  privations  to  which  Italy  was  ex- 
posed during  the  war  owing  to  shortage  of  coal  consti- 
tutes one  of  the  noblest  forms  of  national  sacrifice,  and 
one  of  Italy's  finest  contributions — though  a  silent  one — 
to  victory. 

Italy  is  a  country  in  which  the  use  of  coal  is  not  widely 
diffused.  In  order  to  reduce  the  consumption  thereof  she 
was  thus  compelled  to  restrict  not  so  much  its  non-essen- 
tial uses  as  those  of  primary  necessity.  Italy  went  short 
of  coal  for  her  trenches ;  her  hospitals  were  often  left  en- 
tirely unheated. 

Now,  it  is  true,  the  situation  has  been  relieved  to  some 
extent  by  the  importation  of  American  coal.  This  must 
continue.  In  pre-war  time,  already,  we  imported  Ameri- 
can coal  in  a  limited  measure.  But  until  things  settle 
down  in  England,  and  Germany  starts  to  ship  coal  to 
Italy,  American  help  must  be  substantial,  while  even  that, 
if  there  is  one  country  in  which  continued  coal  business  is 
to  be  done,  that  country  is  Italy.  I  am  sure,  however, 
that  our  American  friends  will  realize,  that  in  order  to 
establish  permanent  relations  with  Europe,  they  must 
bring  the  c.  i.  f.  price  of  American  coal  into  competition 
with  European  coals. 

Parallel  with  coal,  we  require  fuel  oils.  We  need  coal 
substitutes — sometimes  even  for  railroad  purposes — 
almond  shells,  olive  stones,  panels,  etc.  I  have  little  doubt 
that  f  ul  oil  would  prove  a  more  efficacious  substitute. 

We  also  need  larger  supplies  of  timber.  Although  the 
Trentino  brings  with  it  not  inconsiderable  timber  re- 
sources, and  although  we  may  receive  some  timber  from 
Austria,  we  still  need  timber  from  you.  Of  course,  other 
countries  suffered  more  seriously  than  we  did  from  devas- 
tation; but  a  quite  mistaken  impression  seems  to  pre- 
vail that  Italy  did  not  suffer  devastation  at  all,  and  I  only 
wish  it  were  a  correct  one. 

Now,  gentlemen,  the  consecutive  logic  of  my  argument 


THE  INTERNATIONAL  TRADE  CONFERENCE        153 

ought  to  induce  me  to  devote  a  part  of  my  address  to  a 
fervent  attempt  to  convince  you  of  the  reasons  why,  in 
your  own  interest  as  well  as  in  ours,  you  ought  to  help  us. 

Many  of  us,  gentlemen — not  myself,  however,  who  had 
the  privilege  of  meeting  several  of  you  on  the  other  side — 
thought  that  the  chief  task  we  should  have  would  be  that 
of  persuading  you.  It  is  highly  gratifying  to  find  that 
you  are  almost  more  convinced  than  we  are  ourselves. 
This  may  cost  some  of  the  labor  of  recasting  speeches 
prepared  in  advance!  But,  believe  me,  the  helpful  spirit 
you  have  shown  us,  and  the  general  atmosphere  of  sym- 
pathy which  has  surrounded  us  since  our  arrival  in  Amer- 
ica, has  deeply  touched  our  hearts. 

We  all  have  noticed  that,  while  you  are  intent  on  doing 
good,  sound  business,  you  do  it  with  sentiment  in  your 
heart  and  a  vision  in  your  mind.  Herein,  gentlemen,  lie 
the  surest  guarantee  of  the  success  of  this  conference. 

The  spectacle  of  private  business  men  putting  their 
heads  and  their  hearts  together  to  solve,  by  spontaneous 
cooperation,  and,  if  necessary,  sacrifice,  the  problem  of 
world-reconstruction,  is  truly  an  inspiring  one.  It  will 
bring  about  educational  results,  which  will  last  forever. 
No  government  system  could  bring  with  it  such  benefit. 

I  assume,  therefore,  with  the  greatest  gratification, 
that  you  are  prepared  to  help  us.  Along  what  lines  ? 

Long-term  credits  is  the  first  answer.  I  am  not  going 
to  enter  into  details  on  the  subject.  That  will  be  done 
tomorrow.  Only  while  speaking  of  long-term  credits,  let 
me  call  your  attention  to  a  point  which  you  will  certainly 
appreciate ;  that  some  credits  must  of  necessity  be  longer 
than  others.  I  refer  especially  to  food. 

America's  relief  work  in  Europe  is  a  living  monument 
which  she  had  erected  to  humanity.  This  work  cannot 
be  stopped  in  a  moment.  It  must  come  to  a  gradual  end. 
If  things  in  Russia  do  not  take  a  worse  turn  one  year 
ought  to  be  sufficient  to  enable  most  of  the  European 
countries  substantially  to  lift  the  abnormal  pressure  for 
foodstuffs  generally  now  made  on  the  United  States.  But, 


154        THE  INTERNATIONAL  TRADE  CONFERENCE 

during  this  year,  it  would  be  a  fatal  mistake  not  to  take 
particular  pains  to  help  Europe's  food  situation. 

This  can  be  done  in  two  ways:  By  granting  longer 
terms,  and  by  accepting  for  these  essential  commodities 
guarantees  and  collateral  which  you  would  not,  perhaps, 
take,  say  for  cotton. 

There  are  other  ways  in  which  America  can  help  Europe 
generally.  Certain  American  merchandise  is  rendered  al- 
most inaccessible  to  Europe  by  the  high  cost  of  freights. 
Now  America  comes  out  of  the  war  with  a  large  and 
powerful  mercantile  marine.  It  would  be  a  great  benefit 
to  Europe,  and  even  to  yourselves,  if,  through  her  mer- 
cantile marine,  America  would  give  the  lead  to  a  policy 
which  would  tend  to  lower  the  general  cost  of  living  all 
over  the  world. 

These  are  the  general  means  of  helping  the  situation; 
but  there  are  some  which  are  peculiar  to  Italy.  America 
has  capital;  Italy  has  labor.  Many  a  happy  issue  can 
come  out  of  the  marriage  of  American  capital  and  Italian 
labor.  I  have  in  mind  also  American  capital  joining  hands 
with  Italian  labor  in  Italy  itself.  Italian  capital  would 
certainly  be  most  eager  to  cooperate,  and  many  an  asso- 
ciation of  this  kind  might  be  formed.  I  am  told  that 
one  such  is  already  in  existence. 

In  this  connection,  I  think  that  the  ideas  of  a  distin- 
guished countryman  of  yours,  Mr.  David  Lubin,  for  pro- 
moting commercial  relations  between  our  two  countries, 
are  worthy  of  very  careful  consideration. 

There  has  been  much  talk  in  America  of  the  Mediter- 
ranean Basin  as  a  possible  field  for  new  markets  now  that 
the  downfall  of  Turkey  has  opened  up  large  tracts  of  pop- 
ulous country  which  may  regain  their  former  prosperity. 

Mr.  Lubin  pointed  out  that  the  United  States,  while 
naturally  desirous  of  promoting  their  foreign  trade  here 
as  elsewhere,  are  too  far  removed  from  the  field  of  action, 
and  too  little  acquainted  with  the  psychology,  tastes,  and 
requirements  of  those  populations  (including  those  of 
North  Africa,  Asia  Minor,  Greece,  and  Italy  herself) 
to  be  able  successfully  to  conquer  this  trade  by 


THE  INTERNATIONAL  TRADE  CONFERENCE        155 

the  "sample  trunk"  mode  of  doing  business,  that 
is,  the  exportation  to  those  countries  of  manufac- 
tured goods,  ready-made  clothing,  boots  and  shoes, 
agricultural  implements  and  machinery,  and  the 
hundred  and  one  objects  of  common  domestic  use, 
such  as  are  manufactured  and  sold  in  America  and  else- 
where, and  which  would  doubtless  find  a  market  in  the 
Mediterranean  countries  if  properly  introduced. 

Italy,  on  the  other  hand,  is  admirably  suited  for  the 
conquest  of  these  markets ;  she  is  in  a  much  better  posi- 
tion to  adapt  her  products  to  meet  their  tastes  and  re- 
quirements; she  already  has,  throughout  these  coun- 
tries, the  requisite  nucleii  for  creating  trading  organiza- 
tions. 

It  would,  therefore,  be  mutually  advantageous  to  Italy 
and  the  United  States  if  they  were  to  collaborate  for  the 
development  of  the  markets  of  the  Mediterranean  Basin. 
Toward  this  end  Italy  would  become  an  industrial  base 
for  the  production,  on  20th  century  lines,  of  manufactured 
goods  for  sale  in  these  markets. 

Our  financial  experts  will  discuss  the  form  of  guaran- 
tees you  are  going  to  ask  for  your  loans.  You  will,  no 
doubt,  examine,  in  order  of  priority,  the  different  secu- 
rities which  you  are  willing  to  accept.  But  when  speak- 
ing of  guarantees  and  securities,  please  do  not  forget  that, 
even  in  commerce,  the  moral  guarantees  are  always  the 
surest. 

I  have  given  you  some  idea  of  the  future  resources  of 
Italy  in  the  way  of  commercial  expansion.  I  have  shown 
you  that  the  compression  of  our  trade,  having  been  dur- 
ing the  war  necessarily  more  severe  than  it  was  else- 
where, our  margin  of  recovery  is  proportionately  greater. 
That  is  a  guarantee. 

I  have  shown  you  that,  in  consequence  of  our  geograph- 
ical location,  and  the  new  political  situation,  Italy  is  bound 
to  become  the  great  entrepot  for  the  commerce,  and  the 
natural  transit  station  for  emigration  from,  the  Orient. 
That  the  industrial  transition  from  war  to  peace  is  com- 


156        THE  INTERNATIONAL  TRADE  CONFERENCE 

paratively  easier  in  Italy  than  elsewhere.  Those  are 
guarantees. 

I  am  not  going  to  repeat  here,  even  in  a  summarized 
form,  the  enumeration  of  Italian  resources. 

I  have  not  yet  dwelt  on  the  greatest  of  all  resources, 
which  consists  in  the  number  and  equity  of  our  popula- 
tion. Notwithstanding  our  500,000  dead  in  the  war,  we 
possess  forty  million  sober,  thrifty,  hardworking,  very 
prolific  people. 

You  will  find  Italians  in  all  corners  of  the  earth,  under 
every  climate,  in  all  sorts  of  arts,  professions  and  trades ; 
changing,  if  necessary,  their  calling  several  times  in  the 
course  of  their  lives,  always  adapting  themselves  to  cir- 
cumstances. 

Several  years  ago,  when  I  was  in  the  United  States,  in 
the  Emigration  Service,  I  was  asked  to  send  for  an  inter- 
national exhibition  in  Turin  some  evidence  of  the  activi- 
ties of  Italians  abroad.  Do  you  know  what  I  did  ?  I  got  a 
fine  collection  of  photographs  of  the  finest  vineyards,  the 
highest  buildings,  the  deepest  mines,  the  principal  rail- 
roads, and  the  greatest  aqueducts  of  America.  These, 
gentlemen,  are  monuments  erected  by  Italian  labor. 

I  have  incidentally  touched  on  the  privations  which 
Italy  more  than  any  other  country  endured  during  the 
war — living  without  coal,  eating  practically  no  meat,  and 
the  worst  bread  in  Europe.  The  sacrifices  we  then  made, 
gentlemen,  and  are  still  making,  are  a  guarantee  of  our 
determination  to  put  ourselves  again  on  our  feet.  Re- 
member that  we  are,  after  all,  a  young  country.  We  had 
our  Bisorgimento  only  half  a  century  ago.  At  that  time 
our  government  bonds,  the  face  value  of  100  lire,  could 
only  sell  at  48.  Before  the  war  those  same  bonds  sold  at 
106  lire. 

You  have  seen,  you  know,  the  Italian  laborer.  Some  of 
you  may  have  some  time  criticized  him  for  living  here  as 
modestly  as  he  could,  and  saving  his  money.  Gentlemen, 
he  was  repaying  his  country's  debts.  We  have  the  habit 
of  repaying  our  debts  at  whatever  sacrifice  may  be  neces- 
sary. That  is  a  guarantee. 


THE  INTERNATIONAL  TRADE  CONFERENCE        157 

Of  course,  we  have  our  domestic  troubles  of  a  social 
character,  just  like  everybody  else — especially  at  the  pres- 
ent period  of  general  elections — which  are  not,  as  far  as 
I  am  aware,  conducive  to  ideal  peace  and  calm  in  any 
country.  But  let  me  tell  you  most  emphatically  that  to 
talk  of  Bolshevism  in  Italy  is  sheer  nonsense. 

I  can  readily  understand  how  American  watches  with 
concern  and  anxiety  the  internal  situation  of  Europe. 
Europe  is,  of  course,  the  bulwark  against  Bolshevism. 
Geographically  speaking,  Italy  is  more  so  than  any  other 
country.  But  patriotism  and  common  sense  keep  out  Bol- 
shevism. The  common  sense  of  our  laboring  man  you 
have  already  experienced.  I  hardly  think  that  just  now 
you  will  accuse  us  of  not  being  patriotic.  These  qualities 
did  keep  Bolshevism  out  most  effectually  last  spring  when 
an  organized  effort  was  made  to  get  up  Bolshevist  agita- 
tion. It  was  routed  by  the  people  themselves,  and  ended 
up  in  a  great  patriotic  demonstration.  This  occurred  at 
a  moment  of  acute  political  and  economic  stress  and  un- 
rest. 

Gentlemen,  our  friendship  for  America  is  based  not  so 
much  on  the  sentiments  of  the  highest  classes,  as  on  the 
feeling  of  the  millions  of  Italians  who  have  been  over  here 
to  fight  the  battle  of  life.  Nothing,  nothing  can  shake  it. 

But  it  follows,  that  expectations  in  Italy  are  great.  The 
man  in  the  street  in  Italy,  who  almost  regards  America 
as  a  second  Mother  country,  would  never  be  able  to  un- 
derstand how  it  was  that  America  could  not  help  him.  If, 
he  argues,  America  has  invested  money  in  Italy  for  war 
purposes  why  should  she  hesitate  to  invest  capital  in  Italy 
for  the  purpose  of  peace  ? 

Gentlemen,  Italy  is  not  sufficiently  known  in  America. 
You  will  allow  me  to  say  that  you  are  certainly  better 
known  in  Italy  than  Italy  is  over  here.  But,  believe  me, 
we  gain  on  closer  acquaintance.  In  my  official  capacity  I 
have  had  very  extensive  experience  with  American  of- 
ficials, who,  after  all,  were  prominent  business  men.  I 
always  had  their  unfailing  support  and  sympathy.  I 


158        THE  INTERNATIONAL  TRADE  CONFERENCE 

think  it  is  my  duty,  as  it  certainly  is  my  pleasure,  to  ac- 
knowledge this  with  gratitude. 

Gentlemen,  I  do  not  know  whether,  in  depicting  to  you 
the  Italian  situation,  I  have  been  optimistic.  Mine,  how- 
ever, is  not  optimism,  it  is  confidence  and  faith.  Those 
who,  today,  are  unduly  pessimistic  are  no  more  in  the 
right  than  those  who  were  pessimistic  about  our  winning 
the  war. 

We  have,  as  I  have  said,  confidence  and  faith.  Confi- 
dence in  ourselves  and  faith  in  you. 


THE  INTERNATIONAL  TRADE  CONFERENCE 


159 


EVENING  SESSION. 
THURSDAY,  OCTOBER  23,  8.15  O'CLOCK. 

Mr.  Ferguson,  in  the  chair,  said : 

Ladies  and  Gentlemen:  Before  starting  the  meeting  I 
wish  to  make  a  brief  announcement  in  my  own  behalf  and 
in  behalf  of  the  directors  of  the  Chamber  of  Commerce  of 
the  United  States.  When  we  first  started  with  the  idea  of 
holding  this  International  Trade  Conference  it  was  neces- 
sary that  a  great  deal 
of  individual  work  be 
done.  We  sent  to  Eu- 
Hk  rope  two  gentlemen 

K  associated     with     the 

:'M  Chamber,   Mr.   Filene, 

LiMi  jgBJ      *  :; .  and     Mr.     Miner,     of 

Rochester.  Later  they 
were  followed  by  Mr. 
Bedford  and  by  Mr. 
Thomas  Lamont,  and 
later  by  some  of  the 
regular  officials  of  the 
Chamber :  First,  Mr. 
Ben  H.  Lambe,  and 
then  our  general  sec- 
retary. Mr.  Elliot  H. 
Goodwin.  After  a  great 
deal  of  trouble,  not 
with  our  visitors,  but 
in  getting  transporta- 
tion for  our  visitors,  we  finally  brought  them  over 
to  the  United  States.  They  were  met  at  New  York  by  a 
committee  of  which  Mr.  Lewis  Pierson  is  Chairman,  and 
by  the  Chairman  of  our  executive  committee  who  has 
really  been  in  command  during  this  Conference,  Mr.  Bed- 


ANDREW    H.    PHELPS. 


160        THE  INTERNATIONAL  TRADE  CONFERENCE 

ford.  The  amount  of  work  that  had  to  be  done  by  all  of 
these  gentlemen  was  very  great,  but  in  arranging  for  the 
program  of  this  Conference  and  planning  the  various 
group  meetings  I  want  to  pay  special  tribute  to  the  splen- 
did and  untiring  work  that  has  been  done  by  Mr.  John  H. 
Fahey,  of  Boston,  and  I  also  wish  to  mention  the  splendid 
assistance  which  we  received  from  Mr.  Phelps  in  our  New 
York  office,  and  others.  Gentlemen  who  are  used  to  con- 
ferences of  this  kind,  of  course,  appreciate  that  a  great 
deal  of  preliminary  work  must  be  done,  and  I  want  to 
give  my  personal  testimony  to  the  splendid  services  of 
these  gentlemen,  and  I  want  them  to  know  that  all  of  the 
delegates  here  are  very  much  indebted  to  them  for  this 
work  . 

This  afternoon,  ladies  and  gentlemen,  I  had  a  most 
pleasant  meeting  with  a  group  of  Russian  gentlemen 
headed  by  the  Consul  General  of  New  York,  M.  Ustenoff, 
who  came  to  this  Conference  to  witness  the  proceedings 
and  to  be  with  us  here,  on  our  invitation,  sent  by  the  Rus- 
sian Embassy.  These  gentlemen  have  asked  me  to  ex- 
tend to  the  Conference  their  very  best  and  most  cordial 
wishes  for  its  success,  and  I  am  sure  that  you  will  all 
join  me  in  the  hope  that  at  no  very  distant  date  the  dele- 
gates from  Russia  will  sit  with  us  all  and  take  their  full 
share  in  the  proceedings  of  international  trade  confer- 
ences. 


Address  of  M.  Eugene  Schneider, 

Chairman  of  the  French  Mission;  President  of  Creusot   Works; 

President,  Iron  and  Steel  Institute  of  France;  Former 

Member  of  the  Chamber  of  Deputies. 

The  Chairman:  The  first  speaker  of  the  evening  is  so 
well  known  to  you  now  that  he  hardly  needs  an  introduc- 
tion, and  all  I  can  say  is  that  I  do  not  know  of  any  man 
whom  I  had  rather  introduce.  The  President  of  the 
French  Iron  and  Steel  Institute,  is  a  most  distinguished 


THE  INTERNATIONAL  TRADE  CONFERENCE        161 

man,  and  I  have  no  doubt  that  he  will  be  the  presi- 
dent of  something  in  these  United  States  if  he  stays  here 
long  enough.  We  have  come  to  know  him  very  well,  and 
we  not  only  welcome  him  in  his  own  name,  but  we  welcome 
him  in  the  name  of  the  subject  of  his  address  tonight, 
because  ever  since  we  were  boys  and  our  fathers  and  our 
grandfathers  were  boys,  we  have  been  taught  to  love  and 
to  revere  the  country  which  has  sent  him  here.  Since 
Count  de  Grace  and  Lafayette  helped  us  in  the  olden  days 
down  around  the  Chesapeake  to  secure  our  independence, 
up  to  the  present  time,  particularly  during  the  last  few 
years,  we  rejoice  to  know  that  nothing  will  ever  step  be- 
tween France  and  the  United  States.  I  take  pleasure  in 
introducing  M.  Schneider,  our  good  friend. 

M.  Schneider  said: 

Mr.  Chairman  and  Gentlemen:  In  the  name  of  the  four 
Allied  Nations  that  accepted  your  invitation  to  this  Inter- 
national Trade  Conference,  I  endeavored  in  my  general 
address  to  give  you  a  perspective  of  the  economic  situa- 
tion of  Allied  Europe  after  the  Great  Victory. 

It  is  my  duty  now,  as  Chairman  of  the  French  Mission, 
to  present  to  you  more  definitely  the  particular  situation 
in  France  and  to  sketch  as  precisely  as  possible  to  you 
the  condition  in  which  our  country  finds  herself  today, 
on  the  threshold  of  the  new  era  opened  to  the  nations  of 
the  world  by  the  overthrow  of  German  Imperialism. 

Only  a  few  days  before  the  brutal  aggression  that 
turned  loose  over  Belgium  and  France  the  Teutonic 
hordes,  crazed  with  the  lust  of  conquest,  some  of  you, 
gentlemen,  were  gathered  in  Paris  for  the  sixth  Interna- 
tional Congress  of  the  Chambers  of  Commerce. 

France,  enjoying  an  exceptionally  advantageous  geo- 
graphical position,  possessing  a  soil  that  is  proverbially 
fertile,  having  considerable  mine  wealth,  big  industries,  a 
splendid  colonial  territory  of  vast  size  and  with  an  almost 
illimitable  variety  of  resources,  nevertheless  did  not  oc- 
cupy the  prominent  economic  place  to  which  her  possi- 
bilities seemed  to  destine  her  amongst  the  nations. 


162        THE  INTERNATIONAL  TRADE  CONFERENCE 

The  conservative  traditions  of  one  of  the  most  ancient 
civilizations,  the  antiquated  bureaucratic  methods,  an  in- 
grained spirit  of  economy  and  of  thrift,  an  innate 
prudence  and  an  instinctive  mistrust  of  everything  that 
seemed  to  partake  of  any  risk,  a  passionate  spirit  of  in- 
dividualism, the  heavy  burden  of  the  military  service  that 
German  imperialism  imposed  upon  the  very  prosperity  of 
our  country,  checked  in  our  people  that  spirit  of  enter- 
prise and  daring  that  have  made  the  fortune  of  young 
nations. 

Before  the  war  there  were  knockers,  who,  arguing  upon 
this  basis,  put  forward  our  country  as  exhausted,  in- 
capable of  coming  back,  and  good  only  at  most  for  pouring 
out  its  soul  in  the  delicate  expression  of  the  fine  arts. 

Yet,  gentlemen,  this  exhausted  nation  has  just  sus- 
tained for  more  than  four  years  the  most  terrific  shock 
which  has  ever  yet  staggered  humanity.  She  raised  seven 
million  men,  which  equaled  one-fifth  of  her  population, 
and  she  has  offered  in  sacrifice  one  and  a  half  million 
of  them. 

When  her  richest  provinces  were  invaded  she  did  not 
despair.  Deprived  of  her  mines,  of  her  most  flourishing 
industries  and  of  the  industrial  help  of  many  of  her 
people  she  made  new  factories  spring  up,  converted  her 
industries  to  war  purposes,  and,  putting  forth  all  her 
energy  to  the  defense  of  her  territory,  was  able  to  forge 
the  weapons,  not  only  for  herself,  but  for  all  her  Allies. 

I  take  the  freedom  to  recall  this  gigantic  effort  because 
it  is  indispensable  to  take  it  into  account  if  one  is  to  judge 
rightly  our  present  situation.  But  I  do  not  forget  that 
my  purpose  is  to  tell  you  where  we  stand  today,  and  to 
examine  with  you  the  condition  of  our  chief  producing 
forces.  It  is  a  sort  of  balance  sheet  of  our  national  econ- 
omies that  I  wish  to  present  to  you.  And  for  that  pur- 
pose I  think  it  will  be  best  to  review  the  different  chap- 
ters in  which  the  life  of  our  country  is  written,  namely, 
mining,  steel,  textile  and  chemical  industry,  agriculture, 
transportation,  colonies,  and  finance.  This  inventory 
makes  a  dry  statement,  as  is  always  the  case  with  its  kind. 


THE  INTERNATIONAL  TRADE  CONFERENCE        163 

I  ask  for  your  indulgence,  but  I  believe  also  that  you  are 
familiar  and  better  pleased  with  facts  and  figures  than 
with  verbiage. 

OUR  MINING  AND  STEEL  INDUSTRIES. 

Rich  in  iron  ore,  but  somewhat  lacking  in  coal,  France 
had,  before  the  war,  managed  to  build  up  an  iron  and 
steel  industry,  not  only  sufficient  for  her  needs,  but  leav- 
ing a  surplus  for  export. 

The  mining  and  steel  industries  have  been  severely  hit 
during  the  war,  but  no  sooner  had  the  armistice  been 
signed  than  work  began  again  in  the  devastated  regions, 
where  our  plants  are  rapidly  coming  back  to  life.  Even 
though  the  restitution  of  Alsace-Lorraine  does  not  im- 
prove our  coal  resources,  it  nearly  doubles  the  production 
of  iron  ore,  pig  and  steel,  thus  enabling  France  to  build 
up  a  considerable  export  trade  in  this  line,  and  to  assume 
in  the  world's  markets  the  place  that  is  her  due. 

In  1913  the  production  of  the  French  coal  mines 
amounted  to  40  million  tons.  The  total  consumption  was 
63  million  tons,  leaving  a  deficit  of  23  million  tons,  which 
came  from  Belgium,  Great  Britain,  and  Germany. 

As  regards  coke,  the  pre-war  situation  was  also  un- 
favorable, the  imports  amounting  to  3  million  tons,  about 
on  a  par  with  the  French  production. 

Even  before  the  war  France  was  striving  to  develop  her 
coal  and  coke  industry;  newr  coking  plants  had  been 
erected  and  six  new  coal  mines  were  to  have  been  opened 
in  the  new  Pas  de  Calais  basin. 

During  the  war,  the  production  of  the  coal  mines  fell 
50  per  cent,  the  majority  of  the  pits  in  the  North  and  Pas 
de  Calais  being  occupied  by  the  enemy.  They  were  actu- 
ally the  scene  of  the  severest  battles.  Who  does  not  re- 
member the  capture  of  the  Vimy  Ridge  and  the  battles  of 
Lens? 

As  I  have  just  said,  the  production  of  coal  in  France 
fell  from  40  million  tons  to  less  than  20  million,  but  the 
strenuous  efforts  of  the  mining  companies  and  their  men 


164        THE  INTERNATIONAL  TRADE  CONFERENCE 

raised  the  production  to  21  million  tons  in  1916  and  28 
million  in  1917. 

At  the  same  time,  France  harnessed  water-power  in 
order  to  save  coal.  France  is  one  of  the  richest  countries 
in  that  line.  Before  the  war  we  had  700,000  H.  P.  avail- 
able. Today  the  figure  is  1,200,000  H.  P.  Next  year  it 
will  be  one  and  a  half  million  H.  P.  Up  to  now  300  million 
dollars  have  been  spent  in  developing  water-power;  and 
during  the  war  alone  120  million  dollars  were  subscribed. 

After  the  war,  even  with  the  utmost  developments  of 
water  power,  we  shall  be  short  of  coal.  When  the  pits 
are  again  in  order,  the  production  of  France  will  amount 
to  45  or  46  million  tons.  Alsace-Lorraine  produces  about 
3  million  tons,  but  as  she  consumes  11  million,  her  return 
to  France,  instead  of  making  the  problem  easier,  has 
made  it  more  difficult.  The  home  needs  of  the  country 
will  amount  to  about  88  million  tons.  The  Saar  basin 
produces  13  million  tons,  which,  deducing  its  own  con- 
sumption, leaves  a  net  surplus  of  7  million  tons.  Under 
the  stipulation  of  the  Treaty  of  Peace,  Germany  is  obliged 
to  send  20  million  tons  every  year  to  France  to  replace  the 
production  of  the  mines  she  destroyed;  moreover,  she 
must  deliver  to  us  an  extra  7  million  tons,  which  was  the 
average  amount  she  sold  to  us  yearly  before  the  war. 

Up  to  the  present  we  have  not  even  received  one-half 
of  the  quantities  promised  to  us  from  Germany,  and  Eng- 
land has  very  greatly  reduced  her  coal  exports.  So  we 
find  ourselves  faced  by  an  actual  shortage  of  about  20 
million  tons.  We  shall  make  every  effort  to  economize 
coal  and  develop  our  national  resources.  We  shall  con- 
tinue the  rationing  of  coal  for  household  purposes,  and 
we  shall  endeavor  to  make  use  in  large  measures  of  liquid 
fuel. 

The  use  of  fuel  oil  must  be  extended.  Before  the  war, 
the  use  in  France  of  the  products  derived  from  crude  pe- 
troleum was  limited  to  gasoline  and  lubricating  oils.  Fuel 
oil  we  must  use  in  large  quantities  in  future. 

Large  beds  of  shale  exist  in  the  vicinity  of  Autun. 
They  may  be  exploited  for  the  production  of  oil.  Be- 


THE  INTERNATIONAL  TRADE  CONFERENCE        165 

sides,  Alsace-Lorraine  brings  back  with  her  the  Peschel- 
brom  district  with  50,000  tons  of  oil  per  year.  In  the 
French  colonies,  especially  in  the  province  of  Oran,  oil  has 
been  discovered,  and  drilling  has  already  begun  there. 

However,  the  oil  resources  of  France  are  insufficient  for 
her  needs,  and  we  shall  have  to  import.  We  are  making 
the  necessary  preparations.  In  our  ports,  tanks  have  been 
built  with  a  total  storage  capacity  of  600,000  tons.  We 
have  4,000  railroad  tank  cars;  we  have  under  construc- 
tion 10  tank  steamers  which  will  be  added  to  the  very 
small  oil  fleet  we  already  possess  and  to  the  ships  we 
hope  to  get  from  Germany.  An  important  step  has  been 
taken  by  the  Government  to  encourage  the  use  of  fuel  oil, 
the  tariff  having  been  lowered  from  $25  per  ton  to  80 
cents. 

As  regards  the  production  of  iron  ore,  France  occupied 
before  the  war  the  second  place  in  the  world,  and  her  po- 
sition in  the  steel  industry  was  fourth. 

The  opening  and  development  of  the  Lorraine  district 
was  due  to  the  discovery  of  the  Thomas  process  and  the 
increase  in  production  has  been  extremely  rapid  in  the 
last  few  years.  From  5  million  tons  in  1910  it  jumped  to 
21  million  tons  in  1913.  Besides,  Algeria  produces  over 
1,000,000  tons  and  Tunis  half  a  million  tons.  This  pro- 
duction left  a  surplus  of  10,000,000  tons  available  for  ex- 
port. 

As  regards  pig-iron  and  steel,  the  development  of  the 
French  industry  had  been  rapid,  the  increase  between 
1900  and  1913  being  87  per  cent  for  pig-iron  and  150  per 
cent  for  steel.  The  domestic  consumption  had  increased 
in  a  similar  manner,  but  there  was  a  surplus  left  for 
export. 

Early  in  the  war,  France  was  deprived  of  the  whole  Lor- 
raine district.  Eighty-three  per  cent  of  her  total  produc- 
tion of  iron  ore  passed  into  occupied  territory  and  9  per 
cent  into  the  battle  zone.  Production  fell  to  two  and  one- 
half  per  cent  at  the  time  of  the  first  battle  of  the  Marne, 
but  rose  afterward  to  7y2  per  cent  in  1916  and  to  about 
10  per  cent  in  1917. 


166        THE  INTERNATIONAL  TRADE  CONFERENCE 

The  situation  of  the  steel  industry  was  similar;  81  per 
cent  of  the  blast  furnaces  and  65  per  cent  of  the  steel 
works  were  in  the  invaded  zone  or  actually  under  fire. 
However,  the  French  industry  got  to  work  and  during  the 
war,  blast  furnaces  of  an  aggregate  capacity  of  620,000 
tons,  and  converters  or  open  hearth  furnaces  of  a  ca- 
pacity of  over  one  and  one-half  million  tons  were  erected. 

Enormous  plants  for  the  production  of  war  equipment 
were  built,  and  France  was  then  able  to  supply  a  certain 
quantity  of  war  material  to  the  Allies,  beside  taking  care 
of  the  needs  of  her  own  army.  The  total  value  of  the 
equipment  we  furnished  to  the  Allied  and  Associated 
Powers  has  amounted  to  nearly  one  billion  dollars. 

Victory  gives  us  back  the  whole  of  the  Lorraine  iron 
ore  districts,  including  that  which  had  been  held  since 
1870  under  German  domination.  Our  production  of  iron 
ore  will  rise  to  about  45  million  tons,  of  which  we  shall 
be  able  to  export  17  million  tons.  The  pig-iron  production 
will  increase  to  about  9  million  tons,  leaving  about  one 
and  one-quarter  million  tons  for  export.  Steel  production 
will  run  over  8  million  tons,  of  which  more  than  one- 
quarter  will  have  to  be  sold  abroad. 

France,  after  the  war,  will  take  second  place  in  the  list 
of  the  world's  steel  countries,  following  immediately  be- 
hind the  United  States. 

Her  engineering  industry  will  follow  the  lead  of  the 
steel  industry  and  will  get  ready  for  export  business. 
Plans  have  already  been  laid  and  steps  are  already  being 
taken  for  capturing  the  markets  which  were  formerly  in 
the  hands  of  her  enemies.  France  does  not  want  to  com- 
pete with  her  Allies  in  the  foreign  markets,  but  she  wants 
to  supersede  Germany  in  the  countries  where  German  in- 
dustry had  the  lead  before  the  war. 

OUR  TEXTILES. 

I  wish  now  to  say  a  few  words  about  our  textile  indus- 
tries. The  excellent  quality  and  fine  designs  of  our  silk 
goods  are  appreciated  all  over  the  world,  and  America,  as 
well  as  Europe,  is  acquainted  with  our  firms  in  Lyons. 


THE  INTERNATIONAL  TRADE  CONFERENCE        167 

Our  silk  exports  before  the  war  easily  reached  100  million 
dollars  a  year. 

In  the  woolen  business  our  mills  possessed  11  per  cent 
of  the  total  number  of  looms  in  the  whole  world  employed 
for  this  material.  We  were  deprived  of  most  of  them 
during  the  war,  as  our  factories  at  Roubaix,  Tourcoing 
and  Sedan  were  under  German  control.  We  had  2,600,000 
spindles.  We  are  now  replacing  those  that  have  been 
broken  or  stolen,  and  we  have  fitted  up  100,000  new 
spindles  during  the  war.  Alsace  is  bringing  up  500,000 
spindles,  and  if  we  can  obtain  sufficient  raw  material,  I 
am  convinced  that  we  shall  be  able  to  export  double  our 
pre-war  amount  that  is,  more  than  18,000  tons  of  woolen 
stuffs  per  annum.  I  will  only  barely  mention  other  tex- 
tiles, such  as  linen,  hemp  and  jute  stuffs,  the  export  bal- 
ance of  which  amounted  to  50  million  dollars  before  the 
war  and  which  certainly  will  increase  now. 

But  when  I  say  that  these  industries  will  rapidly  out- 
grow our  own  requirements,  I  surely  do  not  mean  that 
American  help  is  not  required  for  them.  When  you  have 
linen  or  dresses  to  buy,  come  to  us ;  we  shall  be  proud  to 
satisfy  the  taste  of  your  wives  and  daughters,  who  appre- 
ciate our  models  and  thus  you  will  help  to  give  employ- 
ment to  hundreds  of  thousands  of  our  people. 

I  now  come  to  cotton  which  deserves  a  special  chapter 
in  this  statement,  as  you  are  the  largest  cotton  growers 
in  the  world. 

Although  we  are  beginning  to  grow  cotton  in  Algeria 
and  in  our  African  colonies,  most  of  our  supplies  come 
from  the  United  States  and  our  requirements  amount  to 
over  one  million  bales  of  American  cotton  per  annum. 

In  1914  the  cotton  industry  in  France  numbered  7,400,- 
000  spindles  and  140,000  looms,  and  employed  300,000 
operatives. 

Mobilization  deprived  the  mills  of  the  overseers  and 
skilled  workers,  such  as  spinners  and  sizers,  and  it  also 
prevented  transport  of  fuel  and  raw  materials.  The  Hun 
invasion  rapidly  gained  the  whole  north  of  France,  bring- 
ing to  a  stop  all  the  country  round  Lille,  Roubaix,  Tour- 


168        THE  INTERNATIONAL  TRADE  CONFERENCE 

coing,  Armentieres,  with  its  1,100,000  spindles  and  20,000 
looms. 

From  October,  1914,  the  other  districts,  and  especially 
Normandy,  pushed  their  production  in  order  to  provide 
for  military  requirements,  the  domestic  and  export  busi- 
ness consequently  suffering  considerable  injury. 

Now,  with  Alsace,  our  country  can  add  one  million 
spindles  and  45,000  looms  to  the  former  number.  This 
well-conducted  industry,  with  first-class  machinery  for 
bleaching  and  printing,  will  enable  us  to  double  our  ex- 
ports, carrying  them  from  46,000  tons  to  92,000  tons. 

In  the  district  of  Lille,  after  having  recovered  or  re- 
placed their  machinery,  our  mills  are  gradually  resuming 
their  work  with  splendid  spirit. 

Three  hundred  thousand  workers  of  both  sexes  are  em- 
ployed in  the  cotton  spinning  and  weaving  mills  in  France, 
but  this  number  rises  to  more  than  1,200,000  if  one  in- 
cludes bleaching,  dyeing,  hosiery  and  the  manufacture  of 
garments;  the  cotton  industry  may  thus  be  considered 
as  one  of  the  largest  and  most  important  in  France. 

The  eight-hour  day  has  been  applied  without  serious 
difficulties  and  the  production  will  not  be  much  affected 
thereby  when  the  proper  measures  are  completed. 

In  fact,  the  cotton  industry  in  France  is  hard  at  work, 
and  with  the  aid  of  Alsace,  hopes  to  contribute  consider- 
ably to  the  wealth  of  the  country. 

THE  CHEMICAL  INDUSTRY. 

France  possessed  a  well-established  chemical  industry 
before  the  war.  It  amply  sufficed  for  her  domestic  re- 
quirements, and  she  was  able  to  export  large  quantities 
of  caustic  soda,  soda  ash,  raw  glycerine,  fertilizers,  tartar 
products,  glues  and  other  chemicals. 

In  order  to  give  an  indication  of  the  size  of  the  chem- 
ical industry  in  France,  I  will  take  as  a  basis  of  compari- 
son the  production  of  sulphuric  acid,  a  production  which 
is  generally  considered  an  index  to  chemical  activity.  In 
1913,  the  various  countries  contributed  to  the  total  out- 
put of  the  world  in  the  following  proportion : 


THE  INTERNATIONAL  TRADE  CONFERENCE        169 

United  States 35  per  cent. 

Germany 17  per  cent. 

Great  Britain 16  per  cent. 

France 13  per  cent. 

Other  countries 19  per  cent. 

Considering  the  population  of  France  and  her  area,  her 
rank  as  fourth,  and  the  percentage  she  produced,  show 
clearly  that  she  was  one  of  the  vigorous  nations  in  this 
branch  of  industry. 

In  the  manufacture  of  the  lighter  and  finer  chemicals, 
the  position  of  France  could  be  compared  with  that  of 
America;  there  was  a  development  adequate  to  the  do- 
mestic demand,  and  the  industry  was  on  a  modern  plane. 
The  only  branches  that  were  lacking  were  those  in  which 
Germany  controlled  the  raw  materials,  or  which  were 
connected  with  the  aniline  dyes  and  which  owing  to  the 
operations  of  the  German  Trust,  had  become  a  German 
monopoly.  In  these  branches  the  French  chemical  in- 
dustry has  not  yet  become  self-sufficing.  Their  impor- 
tance cannot  be  minimized.  The  coal-tar  derivatives  con- 
stitute the  nucleus  of  the  most  modern  branches  of  the 
chemical  industry. 

During  the  war  the  French  chemical  industry  acquired 
a  large  development  through  military  requirements.  The 
expansion  of  the  industry  was  not  relatively  so  great  in 
France  as  in  America,  largely  on  account  of  the  fact  that 
in  France  there  was  a  lack  of  labor  owing  to  the  big  de- 
mand of  the  war  for  man  power  for  the  fighting  services. 
Notwithstanding  this  fact,  it  is  noteworthy  that  the  pro- 
duction of  sulphuric  acid  was  increased  threefold  in 
France  during  the  period  1914-1918,  whereas  in  the 
United  States  the  production  was  only  doubled.  France 
attained  this  result  even  though  her  plants  in  the  North 
became  unavailable  for  national  production,  owing  to  the 
invasion  of  that  territory. 

French  agricultural  needs  will  absorb  a  large  part  of 
the  increased  production.  For  the  rest,  France  may  count 
upon  a  certain  export  business  in  the  same  way  as  she  did 


170        THE  INTERNATIONAL  TRADE  CONFERENCE 

before  the  war.  Her  production  of  nitrates,  cyanide, 
calcium  carbide,  chlorine  and  its  products,  as  well  as  of 
pharmaceutical  and  photographic  products  has  been 
very  considerably  increased. 

Between  the  French  and  the  American  chemical  in- 
dustries a  useful  collaboration  can  perhaps  be  realized 
by  an  exchange  of  the  excess  products  of  each,  between 
the  manufacturers  of  the  two  countries.  A  discussion  on 
this  ground  would  prove  interesting. 

AGRICULTURE  AND  FOODSTUFFS. 

I  now  touch  upon  a  topic  which  will  not  fail  to  inter- 
est you  all,  gentlemen,  because  it  deals  with  the  basis  of 
life:  I  mean  foodstuffs. 

France,  before  the  war,  enjoyed  from  the  food  produc- 
tion point  of  view  an  enviable  position,  due  to  her  fertile 
soil,  her  mild  climate  and  the  quality  of  her  peasants. 
She  found  within  her  own  boundaries  a  great  part  of  the 
necessary  foodstuffs. 

A  few  figures  will  illustrate  this.  In  1912  we  imported 
only  6  per  cent  of  our  wheat,  less  than  3  per  cent  of  our 
oats  (which  came  from  our  colonies),  hardly  any  sugar 
was  needed,  and  as  regards  meat  only  a  few  special  prep- 
arations. 

This  situation  has  been  completely  altered  by  the  war. 
Our  mobilization  withdrew  from  the  farms  all  our  young 
and  middle-aged  men.  And  the  richest  part  of  our  terri- 
tory, which  produced  the  greater  part  of  our  sugar  and 
important  part  of  our  cereals,  was  invaded  at  the  be- 
ginning of  the  war  and  devastated. 

The  area  of  cultivated  land  between  1913  and  1917  fell 
from  about  16  million  acres  to  10y2  million  under  wheat, 
from  10  million  acres  to  7  million  under  oats,  and  from 
620,000  acres  to  less  than  200,000  under  sugar  beets. 

Most  of  our  sugar  factories  having  been  in  the  North 
of  France  were  taken  away  from  us  at  the  beginning  of 
the  war,  those  remaining  under  operation  being  conse- 
quently reduced  to  64  out  of  a  total  of  206. 

By  the  help  of  women  and  of  children  and  of  men  over 


THE  INTERNATIONAL  TRADE  CONFERENCE        171 

52  years  of  age,  who  were  not  called  to  the  Army,  the 
land  was  cultivated  thoroughly  notwithstanding  the  war. 
Indeed  in  the  harvest  of  1918  the  crops  of  wheat  were  10 
per  cent  better  than  in  the  year  before  the  war.  The  im- 
provement did  not  take  place  in  the  land  under  oats,  but 
it  occurred  in  the  best  crop  and  amounted  to  about  the 
same  percentage. 

Owing  to  the  tremendous  consumption  of  meat  by  the 
armies,  owing  also  to  our  losses  by  invasion,  and  owing 
further  to  lack  of  agricultural  labor,  our  reserves  of 
meat,  or  in  other  words  our  cattle,  have  decreased  con- 
siderably. This  has  entailed  a  considerable  importation 
of  meat;  whereas  before  the  war  we  imported  no  fresh 
nor  cold-storage  meat,  the  figures  for  the  last  year  were 
34,000  tons,  while  as  regards  canned  meats,,  the  increase 
has  been  from  550  tons  in  1913  to  48,000  last  year. 

What  is  going  to  be  the  situation  in  the  years  to  come  ? 
Very  important  purchases  will  have  to  be  made.  It  is 
true  that  the  North  of  France  has  been  returned  to  us, 
but  we  still  have  to  make  that  devastated  territory  fertile 
again.  Farms  must  be  rebuilt.  Labor,  machinery  and 
fertilizers  have  to  be  taken  there,  and  this  work  of  re- 
construction is  not  confined  to  the  devastated  area,  but 
extends  over  a  large  part  of  France.  Everywhere  the 
introduction  of  agricultural  machinery  is  being  urgently 
undertaken  in  order  to  replace  the  labor  that  was  lost  by 
hundreds  of  thousands  in  defense  of  the  country  and  the 
liberty  of  the  world. 

Owing  to  the  reduced  areas  under  cultivation,  we  have 
been  obliged  to  make  large  purchases  of  foodstuffs 
abroad.  Our  needs  are  covered  until  the  end  of  this  year, 
but  we  still  have  to  buy  the  following  quantities  in  order 
to  carry  on  from  the  beginning  of  1920  until  about  this 
date  next  year : 

Tons. 

Wheat  1,000,000 

Oats    200.000 

Sugar    100,000 

Condensed  milk  600,000 

Meats  and  meat  products 25,000 


172        THE  INTERNATIONAL  TRADE  CONFERENCE 

The  different  items  amount  approximately  to  150  mil- 
lion dollars  and  will  be  purchased  on  the  most  advan- 
tageous terms  offered  in  different  parts  of  the  world. 

TRANSPORTATION. 

Up  to  the  present,  I  have  so  far  put  before  you  the 
conditions  of  France  with  regard  to  materials  and  prod- 
ucts which  we  either  consume  or  produce.  I  come  now  to 
the  question  of  shipping  them  and  transporting  them, 
and  of  the  means  at  our  disposal  for  that  purpose. 

Before  the  war  our  ocean  freight  was  carried  by  a  fleet 
representing  about  two  and  one-half  million  tons  gross, 
under  the  French  flag  and  by  a  certain  amount  of  for- 
eign tonnage. 

Within  our  own  country,  the  means  of  transportation 
were  well  developed,  having  been  constantly  increased 
and  maintained  adequate  to  the  needs.  They  comprised 
375,000  miles  of  well-surfaced  highways,  3,000  miles  of 
canals;  4,250  miles  of  navigable  rivers,  and  32,000  miles 
of  railroads. 

I  should  like  to  sketch  briefly  for  you  what  that  system 
of  communication  has  had  to  sustain  during  the  war, 
reminding  you  that  we  had  to  cope  with  the  needs  of 
transportation  of  four  Allied  armies. 

In  the  Army  zones  the  highways  carried  millions  of 
men  with  their  artillery,  motor-trucks,  horse  vehicles  of 
every  description  and  automobiles.  At  certain  times,  the 
number  of  motor-trucks  on  our  roads  amounted  to  200,- 
000 ;  there  were  days  when  6,000  trucks  passed  the  same 
point  on  a  single  road.  It  is  not  surprising,  therefore,  that 
an  army  of  some  80,000  men  had  to  be  employed  for  the 
handling  of  road-making  material,  of  which  the  total 
quantity  used  during  the  war  reached  nearly  28  million 
tons. 

The  utilization  of  the  canals  and  navigable  rivers  had 
remarkable  results,  although  our  system  in  the  North, 
which  is  the  most  important  of  all,  was  in  the  hands  of 
the  enemy.  For  instance,  the  traffic  on  the  river  Seine, 


THE  INTERNATIONAL  TRADE  CONFERENCE        173 

which  amounted  only  to  3  million  tons  in  1914,  exceeded 
7  million  tons  in  1918. 

Our  railroads  have  had  to  deal  with  the  greater  part 
of  the  freight  and  troops  transportation,  not  only  toward 
the  Allied  front  in  France,  but  also  toward  Italy  and  the 
fronts  in  the  Orient. 

As  an  example  of  what  has  been  done,  it  may  be  suf- 
ficient to  indicate  that  the  freight  moved  from  our  ports 
by  rail  increased  from  32  million  tons  in  1913  to  52  mil- 
lion in  1916  and  considerably  more  in  the  two  later  years 
of  the  war. 

As  showing  what  has  been  accomplished  since  the 
armistice,  I  may  mention  that  of  our  3,500  miles  of  rail- 
road, that  had  to  be  rebuilt  since  last  November,  3,300 
miles  had  been  completed  by  September  the  15th,  this 
year.  Eight-tenths  of  the  waterways  that  had  been 
destroyed  were  open  to  traffic  on  the  same  date.  The 
highways  had  been  rebuilt  in  the  same  proportion. 

So  far  as  shipping  is  concerned,  we  had  many  sacrifices 
to  make  during  the  war.  The  ruthless  submarine  cam- 
paign caused  us  many  losses,  which  we  were  not  able  to 
replace,  because  our  shipyards  had  been  turned  into 
shops  for  the  production  of  war  material  for  the  armies 
of  our  Allies  as  well  as  for  ourselves.  However,  by  pur- 
chases abroad  we  have  already  succeeded  in  raising  our 
tonnage  to  the  pre-war  figure  of  two  and  one-half  million 
tons,,  but  we  must  state  that  this  has  had  to  be  accom- 
plished largely  by  the  acquisition  of  rather  old  ships, 
which  leave  our  merchant  fleet  in  a  deteriorated  condi- 
tion. We  intend  to  raise  our  shipping  to  at  least  6  mil- 
lion tons  gross.  You  can  give  us  considerable  assistance 
in  this  line,  either  by  the  construction  of  new  vessels  or 
by  giving  us  your  support  in  having  an  appreciable 
quantity  of  tonnage  awarded  to  us  from  German  sources. 

Before  leaving  this  matter  of  transportation,  I  should 
like  to  draw  your  attention  to  the  geographical  location 
of  France  in  regard  to  traffic  coming  from  the  New 
World  to  Central  and  Southern  Europe.  For  instance, 
the  ocean  freight  reaching  French  ports  in  transit  for 


174        THE  INTERNATIONAL  TRADE  CONFERENCE 

Switzerland  had  already  attained  a  total  of  800,000  tons 
a  year.  We  look  forward  to  a  considerable  increase  of 
passenger  traffic  as  well  as  of  freight  diverted  from  Ger- 
man ports.  Docks  are  being  enlarged  and  numerous 
piers  for  large  ships  have  already  been  constructed.  Ma- 
chinery for  handling  freight  is  being  installed  in  larger 
quantities  and  of  the  most  modern  design,  with  a  view 
to  reducing  the  terminal  cost. 

COMMERCE. 

Intimately  tied  up  with  the  reconstruction  of  that 
stricken  region  which  formerly  throbbed  with  industry, 
is  the  restoration  of  our  former  commercial  position. 

We  have  examined  the  effects  of  the  war  upon  the 
leading  branches  of  our  entire  effort.  Our  national  de- 
fense meant  a  sacrifice  of  our  industrial  and  commercial 
interest,  that  cannot  yet  be  valued  in  full.  One  indica- 
tion of  it  is  the  decrease  in  the  export  trade  of  France 
during  the  war. 

If  you  compare  the  statistics  of  1913  with  those  of 
1918  you  will  see  that  our  imports  have  trebled,  whilst, 
as  our  luxury  industries  have  stopped  working  and  the 
plants  that  manufactured  other  articles  have  been  con- 
verted into  war  factories,  our  exports  decreased  40  per 
cent. 

Our  imports  always  exceed  our  exports,  but  the  equi- 
librium of  our  commercial  balance  was  restored  largely 
through  the  thrifty  qualities  of  the  French  people,  who 
had  steadily  amassed  considerable  savings,  which,  they 
did  not  hesitate  to  invest  abroad.  France  has  always 
been  accounted  a  wealthy  nation,  and  all  the  world  has 
known  that  she  reaped  a  large  income  from  her  foreign 
investments. 

Our  manufactured  products  were  67  per  cent  of  our 
total  exports  in  1914,,  when  our  exports  reached  about 
900  million  dollars,  but  in  1916,  the  total  went  down  to 
about  800  million  dollars  and  they  recovered  only  very 
little. 


THE  INTERNATIONAL  TRADE  CONFERENCE        175 

In 

1914  they  were $1,280,000,000 

1915  they  reached 2,200,000,000 

1916  3,000,000,000 

1917 3,200,000,000 

1918 3,800,000,000 

Our  industry,  entirely  given  up  to  our  immediate  needs 
could  no  longer  produce  anything  to  be  exported.  Our 
farmers  were  in  the  trenches.  This  compelled  France  to 
appeal  to  foreign  countries,  not  only  to  complete  her  agri- 
cultural production,  which  was  sufficient  when  harvest 
was  normal,  but  also  to  obtain  raw  materials  required 
for  war  purposes. 

A  long  time  is  needed  to  transform  war  factories  into 
peace  factories,  and  to  reconquer  the  markets  which  were 
lost  during  the  war.  In  order  to  re-establish  the  balance 
of  the  foreign  commerce,  which  had  been  stopped  by  the 
need  of  national  defence,  France  has  energetically  re- 
sumed work. 

The  statistics  for  the  first  months  in  1919  compared 
with  those  for  1918,  for  the  same  period,  show  that 
the  foreign  trade  of  France  has  obviously  improved,  as 
in  the  first  seven  months  of  1919  our  exports  of  manu- 
factured products  reached  a  figure  which  allows  us  to 
hope  that  the  exports  of  1919  will  be  double  those  of 
1918. 

THE  FRENCH  COLONIES. 

The  picture  I  have  just  drawn  of  the  French  Nation 
would  be  incomplete  if  I  did  not  make  a  rapid  sketch  of 
the  possibilities  of  the  French  Colonies. 

Their  surface  is  ten  times  greater  than  that  of  France 
herself.  Their  undeveloped  wealth  is  enormous.  Near- 
est to  us  lies  North  Africa;  that  is  Algeria,  Tunis  and 
Morocco.  These  countries  at  the  time  of  the  Roman 
Empire  were  called  the  granary  of  Rome.  In  a  few  years 
they  will  be  the  granary  of  France.  Northern  Africa 
produces  not  only  wheat  but  fruit,  wine  and  cattle.  Cot- 
ton can  be  cultivated  there.  Her  mineral  wealth  is  con- 
siderable, large  deposits  of  iron  ore,  zinc,  lead  and  phos- 


176        THE  INTERNATIONAL  TRADE  CONFERENCE 

phates  are  under  development.  Even  oil  has  been  struck 
there. 

The  trade  of  Northern  Africa  is  increasing  year  by 
year.  It  amounts  to  more  than  500  million  dollars.  Mo- 
rocco's trade  alone  rose  from  35  million  dollars  in  1918 
to  more  than  77  million  dollars  in  1919. 

Farming  on  an  extended  scale  can  be  practiced  there, 
and  the  use  of  modern  agricultural  machinery  will  be  of 
the  greatest  benefit  to  the  development  of  our  Colonies. 
Algeria,  one  of  the  oldest,  has  more  than  3,500  miles  of 
highways  and  2,000  miles  of  railroads,  while  Morocco 
has  only  450  miles  of  narrow-gauge  railroad  under  con- 
trol of  the  military  service.  A  new  system  of  railroad 
about  600  miles  long,  is  under  construction. 

Harbors  must  be  developed  on  similar  lines.  For 
Algiers  a  sum  of  20  million  dollars  has  been  provided. 
The  construction  of  the  port  of  Casablanca,  capable  of 
handling  one  and  a  half  million  tons  of  shipping  is  being 
rapidly  pushed  ahead.  Other  ports,  such  as  Bougie, 
Kemtra,  Mazagran,  Mogador  and  Agadir  have  been 
improved. 

These  few  facts  will  enable  you  to  understand  the  pos- 
sibilities of  our  colonial  territory  which  includes  besides 
North  Africa  prosperous  countries  like  West  and  Central 
Africa,  Indo-China,  Madagascar,  and  the  French  Islands 
of  the  Antilles  and  the  Pacific. 

These  colonies  will  send  wheat,  vegetables,  oils,  lumber, 
cotton,  and  ores  to  France  and  in  return  will  get  man- 
ufactured products. 

The  opening  of  these  countries  is  of  very  great  im- 
portance to  France  and  French  American  co-operation 
in  that  line  would  probably  give  most  excellent  results. 

FINANCE. 

Tomorrow  morning  my  colleague  Baron  du  Marais, 
Vice-President  of  the  French  Mission,  will  lay  before 
you  a  survey  of  the  financial  situation  of  France,  and 
he  will  tell  you,  gentlemen,  of  the  efforts  which  have  al- 


THE  INTERNATIONAL  TRADE  CONFERENCE        177 

ready  been  made  and  those  which  are  going  to  be  made. 
He  will  deal  also  with  the  exceedingly  difficult  problem 
of  the  International  money  exchange,  which  we  regard 
as  the  most  important  matter  to  be  dealt  with  at  this 
Conference  and  which  will  govern  the  trade  relations  be- 
tween you  and  ourselves.  I  will  content  myself  there- 
fore at  this  time  by  mentioning  that  during  the  course 
of  this  year  the  savings  banks  deposits  have  continued  to 
increase  month  by  month  and  that,  during  the  first  half 
of  this  year,  the  existing  taxes  produced  more  than  200 
million  dollars  in  excess  of  the  estimate.  These  two  facts 
are  signal  evidence  of  returning  prosperity. 

CONCLUSION. 

That  brings  me  to  the  end  of  my  statement  of  the  prin- 
cipal factors  in  our  economic  activity  today.  I  apologize 
for  having  been  so  long  and  so  monotonous,  and  I  thank 
you  for  the  patient  way  in  which  you  have  listened  to  me. 
But  patience  can  be  imprudent,,  for  I  have  to  ask  you  to 
maintain  it  still  for  a  few  minutes. 

I  have  spoken  to  you  of  our  material  situation.  You 
have  been  able  to  see  that  the  material  elements  of  a 
prosperous  future  are  not  lacking.  French  soil,  French 
earth,  our  Colonial  territory  are  endowed  with  resources 
still  unexploited  and  with  almost  infinite  possibilities.  It 
is  clear  to  every  close  observer  that  France  and  her  Col- 
onies can  yield  riches  in  greater  abundance  than  ever 
before. 

The  question  now  is  can  the  French  race  take  proper 
advantage  of  the  country  it  lives  in?  I  mention  this 
question,  because  I  know  that  there  are  people  who  ask  it. 

But  I  call  your  attention  at  once  to  the  fact,  in  case 
you  have  not  yourselves  noted  it,  that  those  who  state  to- 
day that  France  is  at  the  end  of  her  strength,  that  she  is 
exhausted  by  war,  and  that  she  will  not  recover,  are  those 
very  people  who  shouted  in  1914  that  our  defeat  was  in- 
evitable, and  who  predicted  that  at  the  end  of  three 
months'  fighting  the  French  people,  discouraged,  would 
accept  a  dishonorable  peace. 


178        THE  INTERNATIONAL  TRADE  CONFERENCE 

Those  people  are  answered  today  by  the  facts  them- 
selves. It  has  not  been  only  in  the  military  sphere  that 
we  have  risen  to  the  circumstances.  You  have  seen  how 
our  steel  industry,  our  mining,  our  chemical  and  textile 
industries  have  faced  misfortune  and  prepared  to  resume 
their  place  in  the  world. 

The  reconstruction  of  our  devastated  regions  is  today 
in  full  swing.  It  has  taken  many  months  to  make  the 
necessary  inventory,  to  measure  up  the  enormous  size 
of  the  task  to  be  able  to  make  sure  what  was  really 
wanted  under  these  extraordinary  circumstances  and 
then  to  find  the  best  means  of  giving  the  necessary  help. 

During  that  early  period  of  reconstruction  complaints 
were  numerous,  for  the  French  are  of  a  race  of  grum- 
blers well  typified  by  the  "Grognarde"  of  Napoleon. 
Since  the  days  of  Julius  Caesar  they  have  been  unable  to 
render  themselves  absolutely  satisfied.  Today  the  ma- 
chine is  working;  trains  loaded  with  materials  of  all 
kinds  are  running  continuously  toward  the  North. 
Complaints  are  less  noisy  and  fewer  and  fewer.  It  will 
be  the  same  with  the  devastated  parts  of  the  country  as 
it  was  during  the  war,  when  some  part  or  other  of  the 
front  had  been  burst  open  by  the  enemy.  An  urgent  de- 
mand would  be  made  for  reinforcements;  one  day,  two 
days,  three  days,  might  elapse  without  bringing  help  de- 
manded. That  was  when  the  man  of  weak  spirit  would 
think  he  was  utterly  lost.  But  on  the  fourth  day  a  regi- 
ment would  appear,  and  from  that  very  minute,  without 
interruption,  by  rail  or  by  truck,  would  come  the  rein- 
forcements. Time  had  been  necessary  to  set  the  enor- 
mous organization  going,  but  once  again  the  situation 
would  be  saved. 

At  the  time  of  the  armistice  we  had  1,400  miles  of  rail- 
roads to  rebuild  and  by  September  the  1st,  of  this  year 
we  had  completed  1,250  of  the  total.  We  had  1,160 
bridges,  tunnels  and  viaducts  of  one  sort  and  another  to 
rebuild,  and  by  September  1,  last,,  we  had  already  com- 
pleted 588.  Of  670  miles  of  navigable  waterways  to  be 
repaired  we  had  already  finished  450  miles  at  that  same 


THE  INTERNATIONAL  TRADE  CONFERENCE        179 

date.  Out  of  550,000  buildings  destroyed  or  damaged 
by  the  war,  we  had  repaired  60,000  by  the  beginning  of 
last  month,  put  up  over  16,000  huts  and  begun  the  con- 
struction of  60,000  new  homes.  We  have  cleaned  up 
shells  over  an  area  of  1,500  square  miles,  and  have  filled 
in  nearly  80  million  cubic  yards  of  trenches.  We  have 
sent  back  991,000  refugees,  opened  5,000  schools  and  re- 
organized 3,872  civic  communities. 

That,  gentlemen,  is  the  reply  to  those  who  believe  that 
we  are  standing  with  folded  arms. 

Some  of  our  American  friends  have  left  France  under 
the  impression  that  we  had  a  backward  administration 
and  that  red  tape  was  entangling  us.  We  recognize  what- 
ever truth  may  lie  in  those  contentions. 

I  wish  we  could  review  together  the  program  of  the 
many  political  leagues  which  have  been  founded  since  the 
soldiers  returned  home.  Everyone  of  them  demands  the 
administrative  reform  of  France,,  the  upsetting  of  old 
routine,  the  application  of  efficiency  to  Government  mat- 
ters, the  rational  exploitation  of  our  national  resources,  a 
harmonization  of  legislative  and  executive  powers,  the 
decentralization  and  economic  autonomy  of  the  great 
regional  interests  of  the  country,  the  carrying  out  of  a 
vast  plan  of  public  works,  more  air,  more  freedom,  and 
more  initiative.  Such  are,  from  one  end  to  the  other  of 
the  country  demands  of  the  new  generation.  All  these 
schemes,  which  have  been  slumbering  for  such  a  long 
time,  have  been  stirred  up  by  the  war.  You  can  hardly 
realize  how  keen  these  young  men  are  to  stretch  out  and 
play  their  part  in  commercial  and  industrial  business, 
where  once  upon  a  time  they  would  have  been  pleased 
with  the  sedentary  career  of  an  office.  So  much  is  this 
the  case  that  those  who  consider  themselves  the  trustees 
of  our  intellectual  traditions  have  become  alarmed  about 
it.  Four  hundred  young  demobilized  professors  have  de- 
clined to  offer  to  resume  their  teaching,  and  have  taken 
situations  in  manufacturing  or  commercial  business. 

It  can  be  safely  said  that  France  desires  strongly  and 
earnestly  to  start  a  new  life.  We  are  going  to  see  that 


180        THE  INTERNATIONAL  TRADE  CONFERENCE 

desire  expressed  in  the  coming  elections,  and  the  new 
Parliament  will  have  to  carry  it  out.  The  variety  of 
novel  opinions  expressed,  and  even  social  manifestations 
that  we  have  witnessed,  must  be  taken  as  proof  of  the 
overwhelming  activity  of  a  nation  eager  to  reshape  her- 
self, to  produce,  to  hold  her  place  and  look  toward  a  new 
ideal. 

At  the  opening  of  the  Committee  meetings  here,  the 
distinguished  Chairman,  Mr.  A.  C.  Bedford,  asked 
whether  Bolshevism  were  threatening  us  and  whether 
labor  troubles  were  likely  to  compromise  the  safety  and 
security  of  our  business  and  commercial  relations.  I  can 
reassure  him  in  that  respect.  It  is  true  we  have  not  been 
free  of  labor  troubles.  We  experienced  them  even  before 
many  others  did,  and  at  a  time  when  we  were  particu- 
larly sensitive  to  them.  But  perhaps  also  that  is  the 
reason  why  today  we  are  further  ahead  than  the  others 
are.  The  crisis  was  reached  between  last  May  and  July, 
but  common  sense  and  moderation  prevailed.  The 
Union  of  Steel  Workers,  and  then  our  General  Labor 
Federation  assembled  in  Lyons  in  September,  have  both 
repudiated  the  agitators  who  sought  to  lead  them  on  the 
road  to  Bolshevism.  The  International  strike,  called  for 
the  21st  of  July,  failed  completely  and  it  failed  in  France 
because  the  workers  refused  to  follow  the  extremists. 

Those  same  men,  who  devoted  all  their  energy  without 
stint  to  the  work  of  the  war,  without  regard  to  the  hour 
or  the  day  or  the  night,  never  taking  into  account  the 
abnormal  effort,  ignorant  during  these  four  years  of  the 
meaning  of  rest,  have  merely  changed  the  aim  of  their 
efforts.  They  are  not  going  to  rest  until  they  are  dead, 
if  necessary,  to  save  France  in  Peace  as  they  helped  to 
save  her  in  War. 

Gentlemen,,  you  can  have  confidence  in  us.  We  are 
able  to  live.  We  desire  to  live.  Help  us  to  get  out  as 
quickly  as  possible  from  the  difficult  period  we  are  now 
passing  through.  Help  us  to  re-establish  our  commer- 
cial balance  and  to  restore  the  normal  exchange  rate  of 


THE  INTERNATIONAL  TRADE  CONFERENCE        181 

our  money,  and  you  will  see  the  old  tree  of  France  bring- 
ing forth  new  blossoms  and  new  fruit. 

The  Chairman:  Ladies  and  gentlemen,  I  am  sure  I 
have  voiced  your  feelings  when  I  extend  our  very  cordial 
thanks  and  appreciation  for  the  splendid  presentation 
which  has  been  given  us  by  M.  Schneider. 


Address  of  Mr.  Dwight  W.  Morrow 

of  J.  P.  Morgan  &  Company,  Neiv  York, 
on  the  Problems  of  International  Credits. 

The  Chairman:  We  have  one  other  speaker  this  even- 
ing, who  represents  one  of  the  great  banking  firms  in  the 
United  States.  Early  in  the  war,  in  Europe,  before  the 
United  States  had  gotten  into  the  war,  the  house  of  J.  P. 
Morgan  &  Company  became  known  to  every  newspaper 
reader  in  the  United  States  as  the  outstanding  financial 
institution  which  was  assisting  in  every  proper  way  in 
the  financing  of  our  European  Allies — not  yet  our  Al- 
lies— and  of  purchasing  in  this  country  in  hitherto  un- 
known quantities  vast  amounts  of  raw  materials  required 
by  them.  The  work  which  this  house  did  stands  out, 
I  think,  as  an  example  of  what  tremendous  service,  and 
unselfish  service,  too,  can  be  rendered  by  a  large  inter- 
national banking  house  in  such  circumstances.  With  re- 
gard to  purchases  in  this  country,  of  course,  you  are  all 
familiar  with  the  work  done  by  Mr.  Stetinnius.  All  of  the 
members  of  this  firm  did  splendid  work.  The  gentleman 
who  will  address  you  this  evening  was  in  Europe  during 
1918  as  a  member  of  the  Allied  Transport  Council,  and 
assisted  in  the  performance  of  one  of  the  most  difficult 
jobs  of  the  entire  war.  It  gives  me  great  pleasure  to 
introduce  to  you  as  our  next  speaker  Mr.  Dwight  W. 
Morrow. 

Mr.  Morrow  spoke  as  follows: 

The  problem  of  international  credits  is  now  being  dis- 
cussed by  people  in  all  lines  of  activity — by  government 
officials,  by  legislators,  by  leaders  of  labor,  by  economists, 


182        THE  INTERNATIONAL  TRADE  CONFERENCE 

by  merchants,  by  manufacturers  and  bankers.  The  world 
has  gone  through  four  years  of  unprecedented  destruc- 
tion. It  is  now  getting  its  bearings  for  a  fresh  start. 
Many  men  have  many  answers  to  the  pressing  problems 
of  international  trade.  Many  of  the  facts  which  under- 
lie the  problem  are  still  obscure.  Many  of  the  facts  are 
complex  and  cannot  be  grasped  quickly.  There  are  some 
facts,  however,  that  are  clear.  Perhaps  it  would  be  well 
to  start  with  those  facts.  It  will  be  easier  to  develop 
those  things  upon  which  we  disagree  if  we  first  grasp  the 
facts  upon  which  all  must  agree. 

The  merchandise  exports  from  the  United  States  to  all 
countries,  as  shown  by  the  official  publications  of  the  Gov- 
ernment, for  the  past  ten  fiscal  years — that  is,  the  years 
ended  June  30,  were  as  follows : 

1910 $1,744,984,720 

1911 2,049,320,199 

1912 2,204,322,409 

1913 2,465,884,149 

1914 2,364,579,148 

1915 2,768,589,340 

1916 4,333,658,865 

1917 6,290,048,394 

1918 5,919,711,371 

1919 7,225,084,257 

It  is  not,  however,  the  gross  amount  of  our  exports,  but 
the  export  balance  which  vitally  concerns  those  who  are 
studying  the  problem  of  international  credits.  By  the 
export  balance,  we  mean  the  excess  of  exports  over  im- 
ports. The  figures  for  each  of  the  same  fiscal  years  are 
as  follows : 

1910 ; $  188,037,290 

1911 : 522,094,094 

1912 551,057,47& 

1913 652,875,915 

1914 470,653,491 

1915 1,094,419,600 

1916 : 2,135,599,375 

1917 3,630,693,209 

1918 - 2,974,055,968 

1919 4,129,207,675 


THE  INTERNATIONAL  TRADE  CONFERENCE        183 

These  figures  represent  the  balance  of  merchandise  ex- 
ports only.  In  forming  any  conclusions  as  to  the  balance 
of  trade  we  must,  however,  reckon  also  with  what  are 
called  the  invisible  items.  Our  merchandise  exports 
from  this  country  might  be  greatly  in  excess  of  our  mer- 
chandise imports  and  there  might  still  be  no  necessity  for 
foreign  countries  to  ship  gold  to  us.  The  debt  to  us 
created  by  such  merchandise  excess  might  be  offset  by 
the  interest  and  dividends  on  American  securities  held 
in  foreign  countries,  by  the  payment  of  the  principal  of 
maturing  indebtedness,  by  the  repurchase  from  foreign- 
ers of  American  securities,  by  the  expenditures  of  Ameri- 
can tourists  in  foreign  countries,  by  the  payment  of 
freight  charges  to  foreign  ship  owners,  by  the  remit- 
tances of  foreigners  resident  in  the  United  States  to  for- 
eign countries,  and  by  other  similar  items.  The  funda- 
mental fact  remains,  however,  that  when  all  of  the  items 
— visible  and  invisible — are  taken  into  account  the  bal- 
ance must  be  paid  in  gold  or  its  payment  must  be  post- 
poned by  the  extension  of  credit. 

The  history  of  the  last  five  years  illustrates  very  clearly 
the  relation  of  the  export  balance  to  international  credits. 
The  excess  of  merchandise  exports  from  the  United 
States  over  imports  into  the  United  States  from  July  1, 
1914  to  June  30,  1919,  amounted  approximately  to  $13,- 
964,000,000.  We  know  that  during  the  same  period  there 
were  also  net  exports  from  the  United  States  of  about 
$382,000,000  of  silver.  This  made  an  export  balance  in 
five  years  of  the  enormous  total  of  $14,346,000,000.  How 
was  it  settled  ?  Approximately  $994,000,000  was  paid  by 
net  imports  of  gold.  Approximately  $11.702.000,000 
was  covered  by  credits.  Of  this  amount  $9,102,000,000 
was  loaned  by  the  United  States  Government  to  foreign 
governments  and  approximately  $2,600,000,000  was 
loaned  by  the  people  of  the  United  States  to  foreign  gov- 
ernments or  to  private  enterprises  abroad.  This  leaves 
unaccounted  for  approximately  $1,650,000,000  as  the 
amount  apparently  settled  by  invisible  items.  I  use  the 
word  "apparently"  because  I  think  the  invisible  items  in 


184        THE  INTERNATIONAL  TRADE  CONFERENCE 

those  four  years  amounted  to  much  more  than  $1,650,- 
000,000.  For  we  must  remember  that  the  official  reports 
of  our  exports  do  not  include  exports  on  Government 
account.  During  the  period  of  our  participation  in  the 
war  our  Government  exported  great  quantities  of  goods 
not  only  for  its  own  use  but  also  for  sale  to  its  Allies. 
If  these  unrecorded  merchandise  exports  were  added  to 
the  recorded  exports,  the  net  result  would  be  that  the 
balance  that  must  have  been  settled  by  invisible  items 
would  be  greater  than  I  have  indicated,  by  the  amount  of 
our  Government's  exports  sold  to  its  Allies. 

Different  men  with  different  outlooks  upon  life  will 
draw  varying  conclusions  from  the  foregoing  facts.  But 
there  are  some  conclusions  upon  which  I  think  most  of 
us  will  be  in  substantial  agreement.  Surely  no  one  be- 
lieves that  we  can  continue  indefinitely  piling  up  an  ex- 
port balance  of  $4,000,000,000  a  year.  Yet  it  is  a  fact, 
that  with  the  war  over,  the  excess  of  exports  over  im- 
ports for  the  first  eight  months  of  the  current  calendar 
year  was  $3,012,000,000  as  compared  with  $1,947,000,000 
for  the  same  period  in  1918.  These  are  startling  figures ! 
They  indicate  that  the  first  demand  upon  America  for 
the  goods  required  by  a  world  endeavoring  to  put  itself 
back  upon  a  peace  footing  is  fully  as  great  as  the  demand 
which  the  war  itself  made.  I  believe,  however,  that  the 
turn  will  soon  come,  if  it  has  not  already  come.  I  believe 
that  the  exports  from  the  United  States  to  Europe  must 
gradually  diminish  and  that  the  imports  into  this  country 
from  Europe  must  gradually  increase.  Neither  of  these 
results  should  be  deplored.  The  world  will  be  better  off 
when  the  wheat  fields  of  Rumania  and  of  Russia  are 
made  productive  again  for  the  people  of  Europe,  and  this 
country  will  be  better  off  as  a  part  of  that  improved 
world.  Moreover,  at  a  time  when  we  are  complaining 
of  the  high  cost  of  living  we  should  welcome  an  increase 
in  our  imports  of  those  things  that  Europe  can  make  for 
us  better  than  we  can  make  for  ourselves. 

The  net  result  of  the  gradual  decrease  in  our  exports 
and  the  gradual  increase  in  our  imports  must  be  that  the 


THE  INTERNATIONAL  TRADE  CONFERENCE        185 

balance  of  trade  in  favor  of  this  country  will  gradually 
decrease.  It  is  of  importance  to  America  as  well  as  to 
Europe  that  this  decrease  should  come  gradually  rather 
than  abruptly.  At  the  present  time  it  is  vital  to  the  peo- 
ple abroad  to  secure  foodstuffs  and  other  necessities  from 
America.  It  is  also  most  important  to  America  to  fur- 
nish those  necessities  unless  we  are  prepared  for  a  violent 
change  in  industrial  conditions.  But  if  the  decrease  in 
our  export  balance  is  to  be  gradual  and  not  abrupt,  it 
means  that  for  some  time  to  come  there  will  be  a  sub- 
stantial export  balance  to  be  settled  in  gold  or  covered 
by  foreign  credits.  We  can  rely  upon  further  importation 
of  gold  only  to  a  limited  extent.  That  is  why  we  are  all 
studying  this  problem  of  international  credits. 

I  hesitate  even  to  guess  as  to  the  total  amounts  of  for- 
eign credits  that  will  be  required  in  the  coming  months. 
We  know  that  the  imports  from  Europe  are  now  increas- 
ing from  month  to  month,  rising  from  $21,800,000  in 
January  of  this  year  to  $66,900,000  in  August.  In  no  one 
of  these  months,  however,  have  our  exports  to  Europe 
been  less  than  $370,000,000  and  in  no  month  has  the 
excess  of  exports  over  imports  been  less  than  $340,000,- 
000.  The  excess  of  our  exports  over  imports  taking  into 
account  all  countries  of  the  world,  amounted  in  July  of 
the  present  year,  to  $226,000,000  and  in  August  to  $339,- 
000,000.  Our  exports  to  Europe,  however,  exceeded 
our  imports  from  Europe  in  July  by  $347,000,000  and  in 
August  by  $350,000,000.  If  we  assume  that  Europe  can 
reduce  her  purchases  from  the  United  States  progres- 
sively by  $10,000,000  each  month  and  can  also  increase 
her  sales  to  the  United  States  progressively  by  $10,000,- 
000  each  month,  the  merchandise  export  balance  in  favor 
of  the  United  States  for  the  fiscal  year  ending  June  30, 
1920,  will  amount  approximately  to  $3,100,000,000. 

How  will  this  balance  be  settled  ?  No  one  can  say  what 
amount  of  securities  still  held  abroad  will  be  sold  in  our 
markets  in  the  months  to  come,  or  how  much  money  will 
be  remitted  by  people  in  the  United  States  to  people  in 
Europe,  or  how  much  of  the  indemnities  payable  by  Ger- 


186        THE  INTERNATIONAL  TRADE  CONFERENCE 

many  and  Austria  will  be  available  for  England,  France, 
Italy,  Belgium  and  other  European  countries  to  use  in  the 
United  States.  Nor  can  anyone  tell  how  much  the  invisi- 
ble items  operating  in  favor  of  the  European  countries 
will  be  offset  by  like  invisible  items  operating  in  favor  of 
the  United  States.  Let  us  assume,  however,  that  the  net 
invisible  items  in  favor  of  Europe  will  amount  to  $1,100,- 
000,000  by  next  summer.  This  would  leave  $2,000,000,- 
000  to  be  settled  during  the  present  fiscal  year  by  imports 
of  gold  or  the  extension  of  credit.  By  the  extension  of 
credit  I  mean  not  only  direct  loans  to  European  countries, 
but  also  permanent  investments  in  the  property  or  busi- 
ness enterprises  of  foreign  countries.  The  low  rates  of 
exchange  make  it  profitable  for  foreign  business  men 
to  sell  interests  in  their  business  to  American  capital  and 
likewise  profitable  for  owners  of  American  capital  to  make 
investments  in  foreign  businesses.  Investments  of  this 
kind  in  ordinary  times  in  small  amounts  might  be  classed 
with  the  invisible  items.  For  the  purpose  of  this  dis- 
cussion I  am  considering  it  an  extension  of  credit, 
whether  the  party  making  the  investment  abroad  takes 
for  his  investment  an  obligation  paying  a  fixed  rate  of 
interest  or  an  interest  in  a  business  which  will  pay  a  rate 
of  return  dependent  upon  the  profits. 

Lest  I  may  be  misunderstood,  I  want  to  say  again  that 
this  estimate  of  $2,000,000,000  can  be  at  best  but  a  guess. 
The  one  thing  I  want  to  make  clear  is  that  it  will  take  a 
substantial  reduction  in  our  exports  and  a  substantial  in- 
crease in  our  imports  to  bring  the  amount  of  our  mer- 
chandise export  balance  with  Europe  down  to  $3,100,000,- 
000  and  that  it  will  take  a  substantial  amount  of  invisible 
items  to  bring  the  final  balance  which  must  be  settled  by 
imports  of  gold  or  the  extension  of  credit  down  to  $2,000,- 
000,000  for  the  fiscal  year  ending  June  30,  1920.  As 
exchange  rates  drop  there  will  be  more  and  more  of  a 
tendency  for  the  foreign  countries  to  compress  their  de- 
mands upon  American  markets.  The  result  may  be  to 
accelerate  the  decrease  in  our  exports  and  accelerate  the 
increase  in  our  imports,  thus  reducing  the  amount  below 


THE  INTERNATIONAL  TRADE  CONFERENCE        187 

$2,000,000,000.  It  should  be  noted  also,  that  our  mer- 
chandise trade  balance  is  much  more  favorable  to  us  with 
Europe  alone  than  it  is  with  all  the  countries  of  the  world. 
In  other  words,  while  we  are  creating  a  credit  balance 
against  Europe  for  goods  exported  to  her,  we  are,  on  the 
other  hand,  going  in  debt  to  the  rest  of  the  world  for 
goods  imported  from  it.  This  debt  of  ours  to  the  rest  of 
the  world  may  well  be  availed  of  by  Europe  in  settling  a 
portion  of  her  indebtedness  to  us. 

So  far  I  have  dealt  with  the  amount  of  credits  that  this 
country  might  reasonably  be  called  upon  to  furnish  to 
Europe.  Now,  how  are  these  credits  in  practice  fur- 
nished? The  simplest  way  for  a  foreign  credit  to  be 
extended  would  be  for  the  individual  seller  in  this  coun- 
try to  give  credit  to  the  individual  buyer  abroad.  The 
manufacturer  who  is  sending  his  goods  abroad  might 
take  the  promise  of  his  customer  to  pay  for  those  articles 
at  some  future  date  instead  of  demanding  cash.  Why 
does  he  not  do  it  ?  For  the  very  simple  reason  that  he  is 
like  every  other  member  of  the  community.  He  has 
available  for  investment  only  his  profits  or  savings 
After  he  has  invested  his  own  savings  in  a  foreign  credit 
he  must  look  about  for  some  other  person  who  has  sav- 
ings and  get  that  person  to  buy  from  him  his  foreign 
customer's  promises  to  pay.  If  he  cannot  find  such  a 
person  he  must  quit  selling  to  foreigners. 

It  is  most  difficult,  however,  for  a  manufacturer  to  find 
the  person  with  savings.  The  manufacturer  cannot  stop 
running  his  plant  to  look  for  the  man  with  savings.  The 
man  with  savings  may  live  very  far  from  the  door  of  the 
manufacturer.  In  fact,  the  man  with  savings  lives  not 
only  in  the  large  cities  but  in  a  thousand  little  hamlets 
and  upon  thousands  of  farms  all  over  the  United  States. 
The  manufacturer,  therefore,  needs  the  co-operation  of 
an  investment  banker — perhaps  of  a  thousand  bankers 
whom  he  has  never  seen  and  whose  names  he  does  not 
even  know.  It  is  the  function  of  the  investment  banker 
to  find  this  man  with  savings  and  to  find  the  people  who 
desire  and  are  deserving  of  credit,  and  to  get  the  former 


188        THE  INTERNATIONAL  TRADE  CONFERENCE 

to  extend  the  credit  to  the  latter.  In  a  sense,  the  inter- 
national bankers  gather  up  a  thousand  little  rivulets  of 
capital  into  one  large  stream  and  thereby  arrange  for  the 
postponement  of  the  settlement  of  a  trade  balance. 

Can  the  people  of  this  country  invest  $2,000,000,000  in 
foreign  obligations  and  properties  in  a  single  year  ?  That, 
to  my  mind,  involves  two  distinct  questions:  First,  will 
the  people  of  this  country  have  that  much  capital  to  lend  ? 
Second,  will  they  be  able  to  find  people  in  Europe  to 
whom  they  are  willing  to  lend  it? 

The  first  question  is  fundamentally  a  question  of  our 
own  ability  to  produce  and  to  save.  The  central  figure  in 
that  part  of  the  problem  is  not  the  manufacturer  as  such, 
nor  the  producer  of  raw  material  as  such,  nor  the  banker 
as  such,  but  the  man  who  saves.  I  should  like  to  suggest 
the  bearing  of  the  high  cost  of  living  upon  this  whole 
problem  of  savings.  I  should  like  to  touch  upon  the  im- 
portant question  as  to  what  difference,  if  any,  the  re- 
markable change  in  our  international  position  should 
make  in  our  tariff  policy.  But  this  is  not  the  time  or 
place  to  go  into  those  questions.  The  one  fundamental 
thought  that  we  must  hold  on  to  is  that  while  there  will 
be  many  minor  actors  in  the  great  enterprise  of  the 
restoration  of  Europe,  the  indispensable  man  in  that 
enterprise,  the  hero  of  that  enterprise,  will  be  the  plain, 
old-fashioned  man  who  spends  less  than  he  produces  and 
thus  creates  the  fund  without  which  all  of  the  plans  for 
restoration  of  Europe  must  come  to  naught.  He  may  be 
rich  or  he  may  be  poor.  He  may  be  a  banker,  or  a  mer- 
chant, or  a  school  teacher,,  or  a  wage-earner.  But  he  must 
be  a  saver.  For  it  will  be  true  in  the  future,  as  it  has 
been  in  the  past,  that  there  is  only  one  way  for  the  cap- 
ital fund  to  increase,  and  that  is  by  the  accumulation  of 
savings.  We  are  talking  about  very  big  figures  when  we 
speak  of  $2,000,000,000.  But  we  are  talking  also  about  a 
very  big  country  with  millions  of  strong,  energetic,  reso- 
lute people.  Fortunately,  too,  those  people  have  had  some 
education  in  saving  in  the  past  two  years.  If  the  average 
savings  of  one  hundred  million  people  of  the  United 


THE  INTERNATIONAL  TRADE  CONFERENCE        189 

States  should  be  twenty  cents  a  day  for  three  hundred 
days  a  year,  the  capital  fund  of  the  United  States  avail- 
able for  investment  would  be  increased  by  $6,000,000,000. 
A  large  portion  of  that  new  capital  would  be  required  for 
necessary  additions  to  capital  employed  in  the  United 
States,  but  much  of  the  balance  would  be  available  for 
Europe  if  conditions  over  there  are  such  as  to  attract 
capital.  I  do  not  believe  that  there  is  any  doubt  that  if 
the  American  people  want  to  do  it — if  they  go  on  saving 
instead  of  thinking  that  the  necessity  for  saving  passed 
by  when  the  armistice  was  signed — they  can  produce  and 
save  this  fresh  capital  that  is  needed. 

The  second  fundamental  question  is  whether  this  old- 
fashioned  man  who  has  saved  money  can  find  people  to 
whom  he  is  willing  to  lend  it,  and  that  is  not  nearly  as 
simple  a  matter  as  it  seems.  We  have  heard  a  great  deal 
about  bankrupt  Europe.  We  have  heard  that  there  is  no 
way  to  get  credit  for  European  countries  except  through 
receivers'  certificates.  We  have  heard  that  Europe  has 
been  wounded  so  badly  that  she  cannot  recover  in  a  hun- 
dred years.  May  I  be  permitted  to  say  that  such  talk  is 
not  encouraging  to  the  plain  individual  who  has  saved 
something,  and  who  is  looking  for  somebody  to  whom  he 
is  willing  to  lend  those  savings  ?  That  old-fashioned  man 
has  saved  some  money  for  his  wife  and  his  children. 
Perhaps  he  expects  to  send  his  boy  or  his  girl  to  school  or 
to  college.  He  wants  to  get  interest  upon  his  money  while 
it  is  away  from  him,  and  he  wants  to  get  the  principal 
back  some  day.  There  is  no  use  fooling  either  our  dis- 
tinguished guests  or  ourselves.  The  people  who  save 
money  in  America  are  not  going  to  loan  it  to  Europe  if 
they  believe  that  Europe  cannot  pay  it  back.  The  people 
who  lend  money  to  Europe  are  going  to  lend  that  money 
because  they  believe  the  borrower  will  pay  it  back;  they 
are  going  to  lend  money  to  Europe  because  they  believe  in 
Europe's  strength.  One  of  the  most  important  questions 
for  this  conference,  and  for  similar  conferences,  is  to 
determine  whether  or  not  that  belief  is  warranted.  I 
know  that  I  speak  for  all  of  you  when  I  say  that  the  in- 


190        THE  INTERNATIONAL  TRADE  CONFERENCE 

spiring  thing  at  these  meetings  has  been  the  presen- 
tation of  the  situation  in  Europe  by  the  courageous  rep- 
resentatives of  Belgium  and  of  Italy  and  of  France  and 
of  Great  Britain.  The  representatives  of  those  great 
countries  have  not  whined  about  their  losses.  They  have 
told  us  proudly  of  their  countries'  strength.  They  have 
shown  us  that  there  are  great  elements  of  strength 
abroad,  elements  of  strength  which  the  wisest  people  over 
there  now  appreciate  and  which,  sooner  or  later,  will  be 
fully  appreciated  by  us. 

We  see  the  war  today  as  a  great  destruction  of  life  and 
property,  as  an  enormous  sacrifice  of  the  material  accum- 
ulations of  centuries,  as  an  even  greater  sacrifice  of  young 
lives  that  held  the  promise  of  the  future.  Appalled  as  we 
are  by  this  enormous  destruction,  are  we  not  all  apt  to 
forget  that  with  nations,  as  with  individuals,  it  is  not  the 
accumulations  of  the  past  which  determine  future  or  even 
present  prosperity  so  much  as  it  is  the  moral  and  eco- 
nomic traits  of  the  producers — their  willingness  to  work, 
their  willingness  to  do  without  something  today  in  order 
that  their  children  may  have  something  tomorrow.  We 
cannot  certainly  know  the  future,  but  we  are  at  fault  if 
we  do  not  bring  to  bear  upon  the  present  all  of  the  les- 
sons that  the  past  has  given  us.  At  this  time,  when  so 
many  are  talking  lightly  about  Europe  never  recover- 
ing herself,  is  it  not  well  wrorth  while  for  a  groping  world 
to  recall  the  many  instances  in  history  of  recovery  from 
the  ravages  of  war? 

Three  hundred  years  ago,  the  little  province  of  Holland 
was  being  racked  by  a  war  which  had  already  lasted  for 
more  than  a  lifetime.  And  the  rigor  with  which  Spain 
punished  Holland  has  not  yet  been  matched.  For  almost 
three  generations,  with  a  few  short  truces,  cities  were 
sacked  and  wealth  confiscated,  men  butchered  and  women 
violated.  And  yet  it  seems  as  though  the  ingenuity  of 
Spanish  cruelty  had  but  released  in  the  Dutch  people  a 
courage  and  initiative  which  no  obstacle  could  stop. 
With  a  new  boldness  and  energy,  Holland's  commercial 
men  spread  themselves  over  the  whole  world,  laying  the 


THE  INTERNATIONAL  TRADE  CONFERENCE        191 

firm  foundation  for  that  commercial  position  which  is  to 
this  day  the  great  characteristic  of  the  nation.  In  the 
year  1913,  the  last  calendar  year  before  the  present  war, 
Holland's  foreign  trade  amounted  to  about  $3,000,000,- 
000.  Holland — in  area  not  nearly  so  large  as  the  State  of 
Missouri,  in  population  smaller  than  New  England — had 
a  foreign  commerce  in  1913  equal  to  about  55%  of  that 
of  Germany,  and  to  about  70%  of  that  of  the  whole 
United  States ! 

England  battled  with  Napoleon  for  more  than  twenty 
years.  It  has  been  estimated  that  by  1815  the  taxes  had 
risen  to  more  than  17%  of  the  entire  national  income. 
But  the  long  war  was  hardly  over  before  the  growth  of 
England's  industry  at  home  and  her  commerce  abroad  had 
made  her  easily  the  leading  industrial  and  commercial 
nation  of  the  world,  meeting  the  interest  charge  upon  a 
mountain  of  new  debt  more  easily  than  she  had  met  the 
charge  upon  the  old. 

France  in  1871  lay  at  the  feet  of  Prussia.  Stripped  of 
a  substantial  portion  of  her  richest  territory,  burdened 
with  a  crushing  indemnity,  torn  by  the  internal  revolution 
which  followed  the  humiliating  terms  of  peace,  one  might 
well  have  despaired  of  France.  But  in  less  than  three 
years  the  war  indemnity  had  been  paid ;  the  foreign  trade 
of  France  in  1873  was  20%  larger  than  in  1869;  and  the 
fighting  generation  had  not  passed  away  before  the 
thrifty  French  peasant  was  helping  you  build  your  west- 
ern railroads ! 

There  are  no  exact  parallels  in  history.  The  growth  of 
Dutch  commerce  in  the  16th  and  17th  centuries  was  pro- 
foundly affected  by  the  new  world  trade  routes  which 
took  away  from  the  Italian  cities  the  strategic  position 
which  they  had  so  long  held.  The  voyage  of  the  Portu- 
guese navigator,  Vasco  da  Gama,  around  the  Cape  of  Good 
Hope  carried  in  its  consequences  more  permanent  damage 
to  the  commerce  of  Venice  than  all  the  Spanish  invasions 
brought  to  Holland.  England's  commercial  supremacy 
after  the  Napoleonic  Wars  was  due  in  large  measure  to 
the  industrial  revolution  wrought  by  new  inventions. 


192        THE  INTERNATIONAL  TRADE  CONFERENCE 

Give  any  nation  the  inventive  genius  of  a  Watts,  a  Har- 
greave  or  an  Arkwright  and  it  may  well  throw  in  the 
scrap-heap  much  of  its  material  capital.  But,  although 
new  circumstances  may  have  made  the  new  opportunities, 
the  fundamental  fact  remains  that  those  opportunities 
were  grasped  by  a  people  resourceful  and  alert,  perhaps 
more  resourceful  and  alert  by  reason  of  suffering  and 
sacrifice.  Material  losses  may  be  outweighed  by  gains  in 
character  and  capacity. 

Do  not  misunderstand  me;  I  am  not  suggesting  that 
wars  are  ever  profitable  to  a  people.  It  is  hard  to  con- 
ceive of  any  result  reached  by  any  war  which  could  not 
have  been  reached  at  enormously  less  cost  if  men  them- 
selves only  understood  each  other  a  little  better.  The 
tragedy  of  the  human  race  has  been  the  costliness  of 
progress.  But  we  may  be  permitted  to  recall  to  ourselves 
in  times  like  these  that  history  has  furnished  many  in- 
stances of  great  burdens  upon  a  nation  calling  forth  great 
powers.  And  we  must  not  forget  that  in  the  future,  as 
in  the  past,  character  and  capacity  and  skill  in  organiza- 
tion will  be  the  qualities  by  which  civilized  peoples  will 
judge  the  worth  of  individuals  and  of  nations. 

Have  the  people  of  Europe  that  character  and  capacity 
and  skill  in  organization  which  will  attract  our  increasing 
supplies  of  accumulated  savings  ?  Can  any  one  of  us  who 
is  familiar  with  their  whole  history  doubt  it?  Can  any 
one  of  us  who  has  watched  their  conduct  during  the  more 
than  four  years  of  war  doubt  it  ?  Can  any  one  of  us  who 
has  met  their  courageous  representatives  at  this  confer- 
ence doubt  it?  Credit  is  not  based  primarily  upon  the 
accumulations  of  the  past.  Credit  is  not  based  primarily 
upon  the  amount  of  property  that  one  has  inherited  or 
saved.  Credit  always  has  depended,  and  credit  always 
must  depend,  upon  the  moral  and  economic  qualities  of 
the  borrower,  upon  his  willingness  to  work,  upon  his 
ability  to  produce  and  to  save.  You  men  represent  the 
Chambers  of  Commerce  of  this  great  country.  You  have 
come  from  all  over  the  United  States  to  attend  this  con- 
ference. I  ask  any  one  of  you  to  look  back  ten  or  twenty 


THE  INTERNATIONAL  TRADE  CONFERENCE        193 

years  in  the  history  of  your  own  city.  Are  the  men 
who  are  strong  in  your  own  communities  today  necessa- 
rily the  people  who  had  property  ten  or  twenty  years 
ago?  In  almost  every  community  in  this  land  the 
creative  men  today  are  the  men  who  had  ideas  ten  or 
twenty  years  ago,  the  men  who  had  courage,  who  had 
character,  who  had  capacity,  who  had  thrift!  It  is  with 
nations  much  as  it  is  with  individuals.  We  have  seen 
the  nations  of  Europe  go  through  four  years  of  war.  We 
have  seen  them  go  down  into  the  valley  without  giving 
way  to  despair.  We  have  seen  their  character  and  their 
steadfastness  bring  them  to  a  great  triumph.  I  tell  you 
that  if  credit  is  a  thing  to  be  extended  to  creditable  peo- 
ple, then  credit  will  be  extended  to  the  nations  of  Europe. 

Take  the  little  country  of  Belgium.  Is  there  any  man 
who  thinks  of  credit  in  terms  of  character  who  would 
not  rank  Belgium's  credit  as  high?  The  man  who  incurs 
a  debt  makes  a  promise.  He  promises  to  pay  back  the 
amount  that  he  has  borrowed.  The  wise  creditor  always 
puts  his  reliance  primarily  upon  that  promise.  I  need 
not  tell  you  business  men  that  a  lender  has  more  chance 
of  getting  back  his  money  from  a  man  of  small  property 
who  measures  and  keeps  his  promises  than  from  a  man 
of  ample  property  who  breaks  his  promises.  No  sensible 
person  lends  money  for  the  sake  of  later  enforcing  col- 
lection. We  do  not  willingly  buy  law  suits.  We  put  our 
trust  in  the  capacity  and  character  of  the  promisor. 
Now,  we  all  know  that  five  years  ago  there  came  to  Bel- 
gium a  great  test.  She  was  required  to  choose  whether 
she  would  keep  or  break  her  promise.  And  Belgium  kept 
her  promise  although  it  meant  the  destruction  of  her 
property,  although  it  meant  the  burning  of  her  cities, 
although  it  meant  the  slaughter  of  her  sons  and  daugh- 
ters. Does  anybody  want  a  better  promisor  than  Bel- 
gium? 

Take  Italy.  Those  of  you  who  heard  Prof.  Attolico  at 
the  committee  meeting  yesterday  and  at  the  public  meet- 
ing this  afternoon,  must  appreciate  how  much  courage 
and  vitality  there  is  in  Italy.  I  had  the  very  great  privi- 


194        THE  INTERNATIONAL  TRADE  CONFERENCE 

lege  of  working  with  Prof.  Attolico  on  the  Allied  Mari- 
time Transport  Council  for  one  year  during  the  war. 
Only  those  who  saw  intimately  the  economic  side  of  this 
war  will  ever  appreciate  the  discouragements  under  which 
the  Italian  nation  had  to  fight  from  the  beginning  to  the 
end  of  the  war.  They  were  short  of  many  of  those  essen- 
tial things  without  which  people  cannot  fight.  They  were 
using  about  1,000,000  tons  of  coal  a  month  in  times  of 
peace;  and  yet  there  were  allotted  to  them  during  the 
war — for  their  great  munition  plants,  for  their  aeroplane 
and  automobile  factories,  for  the  movement  of  their 
troops  backward  and  forward  across  the  land,  for  keep- 
ing their  people  warm — something  like  600,000  tons  of 
coal  a  month,  and  they  did  not  get  even  that  much  dur- 
ing the  last  months  of  the  war.  There  were  many  times 
during  this  war  when  Italy  was  within  a  few  days  of 
being  entirely  without  coal.  And  then  there  came  a  time 
when  the  very  heart  of  Italy  was  torn  open  at  Caper- 
etto.  But  Italy  did  not  quit.  Italy  did  not  give  up. 
Italy  kept  her  courage.  And  almost  unaided  she  won 
those  overwhelming  victories  over  Austria  at  the  end.  It 
is  no  easy  task  that  now  confronts  Italy.  It  is  a  very 
hard  task.  But  for  five  years  we  have  watched  Italy  do- 
ing the  hard  thing.  We  have  seen  her  triumph  over  dif- 
ficulties much  greater  than  those  which  now  confront 
her.  There  will  be  perplexing  days  ahead  of  her.  But 
if  her  difficulties  are  great,  so  also  are  her  opportunities. 
She  stands  today  on  the  threshhold  of  a  new  life.  For  the 
first  time  in  modern  history  she  has  gathered  her  chil- 
dren within  her  national  borders.  The  new  Italy  should 
be  greater  and  stronger  than  Italy  has  ever  been  in  the 
past. 

Take  France.  I  know  that  there  are  people  who  come 
back  from  abroad  and  tell  us  that  France  is  ruined,  that 
she  will  not  get  back  on  her  feet  in  a  generation.  I  know 
that  there  are  people  who  say  that  France  is  idle,  that 
France  has  quit  working,  that  France  is  shell-shocked. 
Such  people  have  looked  at  that  great  scar  running  from 
the  North  Sea  to  the  Vosges  and  have  thought  they  were 


THE  INTERNATIONAL  TRADE  CONFERENCE        195 

seeing  all  of  France.  They  have  seen  the  French  soldier 
discharged  from  the  army  with  a  few  hundred  francs  as 
his  discharge  pay,  a  soldier  who  has  been  fighting  for 
four  years,  whose  family  perhaps  was  in  the  occupied 
area — they  have  seen  that  soldier  go  to  his  home  on  a 
month's  holiday;  and  they  tell  us  that  France  has  quit 
working.  I  wish  such  people  might  have  sat  here  this 
evening  and  listened  to  that  admirable  paper  read  by 
M.  Schneider.  I  wish  they  could  get  the  picture  of  the 
French  peasant  working  all  over  France.  I  wish  they 
could  get  the  picture  of  the  new  savings  accounts  that 
have  been  started,  of  the  schools  that  have  been  opened, 
of  the  railroads  that  have  been  rebuilt,  of  the  ditches 
that  have  been  filled  up,  of  the  barbed  wire  that  has  been 
removed.  The  cataclysm  of  the  war  struck  France  with 
its  full  force,  and  yet  we  hear  from  M.  Schneider  how 
much  has  been  done  by  the  courageous  French  people  in 
a  short  twelve  months.  The  French  people  may  very 
naturally  be  hesitant  until  they  get  their  facts  and  are 
sure  that  they  are  moving  in  the  right  direction.  But, 
shell-shocked  ?  No !  France  is  strong  and  alert  and  vig- 
orous and  ready  to  go  ahead. 

What  need  one  say  about  the  credit  of  Great  Britain? 
I  have  been  told  that  it  is  not  easy  to  talk  to  an  American 
audience  about  Britain  after  one  has  spoken  of  Belgium 
and  Italy  and  France.  Old  differences  and  prejudices  are 
not  yet  entirely  removed.  But  I  think  that  Admiral  Sims 
is  correct  when  he  tells  us  that  one  reason  why  we  do  not 
always  get  along  with  England  is  that  we  are  so  very 
much  alike.  In  one  of  his  Liberty  Loan  speeches  the 
Admiral  remarked,  with  his  dry  humor,  that  an  English- 
man generally  goes  into  a  drawingroom  as  though  he 
owned  it,  and  that  an  American  goes  into  the  same  room 
as  though  he  didn't  care  who  owned  it.  Perhaps  it  is  true 
that  both  are  lacking  in  that  delicate  appreciation  of  the 
sensibilities  of  others  which  is  so  marked  a  characteristic 
of  the  French  nation  and  which  has  made  that  nation  for 
generations  the  interpreter  for  the  peoples  of  the  earth. 
But,  surely  it  is  not  necessary  to  tell  business  men  what 


196        THE  INTERNATIONAL  TRADE  CONFERENCE 

those  tenacious  British  people  did  in  this  war.  I  am  not 
going  to  speak  of  the  great  contributions  of  their  fighters 
on  the  sea  and  on  the  land  and  in  the  air.  I  am  thinking 
tonight  rather  of  the  dull,  prosaic  things — the  things  that 
do  not  stir  the  imagination  as  do  the  achievements  of  the 
fighting  men.  I  am  thinking  of  the  efficient  body  of  civil 
servants  who  keep  on  doing  the  work  of  the  British  Em- 
pire through  all  changes  of  ministries.  When  we  get  far 
enough  away  from  this  war  we  will  begin  to  appreciate 
the  great  contribution  along  economic  lines  that  the 
British  Empire  made  to  the  Allied  forces  from  the  begin- 
ning to  the  end  of  the  war.  For  two  years  and  a  half 
Great  Britain  was  the  principal  reservoir  of  economic 
strength,  cheerfully  doing  without  things  in  order  that 
she  and  her  Allies  might  have  the  means  with  which  to 
fight.  And  after  America  entered  the  war  she  shared 
with  us  the  great  burden  of  furnishing  the  supplies  and 
the  credit.  In  her  unpreparedness  she  blundered  as  we 
all  have  blundered,  but  I  think  it  is  only  fair  to  say  that 
she  has  excelled  us  all  in  proclaiming  her  own  blunders 
to  the  world.  And  with  that  doggedness  which  we  asso- 
ciate with  the  British,  she  went  straight  through  to  the 
end,  more  or  less  indifferent  to  praise  or  to  blame.  I  do 
not  underestimate  in  the  slightest  degree  the  great  prob- 
lems of  re-adjustment  that  face  the  British  Empire  now 
that  peace  has  come.  True  to  her  tradition  of  free 
speech,  Britain  is  still  proclaiming  her  blunders  to  the 
whole  world.  But  let  us  try  to  keep  our  perspective.  For 
more  than  a  thousand  years  that  nation  has  gone  on, 
emerging  from  her  difficulties  by  her  rugged  common 
sense.  If  the  past  tells  us  anything  it  is  that  Great 
Britain's  credit  is  good;  if  the  past  has  taught  us  any- 
thing it  is  that  Great  Britain  will  measure  her  promises 
carefully  and  keep  them  scrupulously. 

Our  distinguished  guests  have  come  to  us,  not  as  sup- 
pliants asking  for  credit  because  of  their  weakness,  but 
standing  erect,  asking  for  credit  because  of  their 
strength.  No  man  can  tell  how  they  are  going  to  get 
credits  that  they  seek.  No  man  either  in  America  or  in 


THE  INTERNATIONAL  TRADE  CONFERENCE        197 

Europe  can  tell  how  much  their  apparent  needs  will  be 
compressed  by  their  own  energy  and  ingenuity  and  thrift 
as  the  war  recedes  further  and  further  into  the  back- 
ground. No  man  knew  in  April  or  May  of  last  year  how 
America  was  ever  going  to  send  an  army  of  2,000,000 
men  to  Europe,  but  somehow  or  other,  with  the  help  of 
our  Allies,  we  were  landing  ten  thousand  men  a  day  in 
France  when  the  armistice  was  signed.  The  energy  and 
capacity  that  was  released  during  the  war  must  be  di- 
rected to  the  performance  of  the  great  task  that  now  con- 
fronts us  all.  The  depleted  capital  of  the  nations  of 
Europe  will  be  gradually  restored  by  their  own  fresh 
savings,  and — what  is  equally  essential — those  savings 
will  be  protected  by  their  own  free  governments.  The 
same  high  qualities  that  will  create  and  protect  their  own 
savings  will  attract  and  protect  the  accumulated  savings 
of  America.  The  stable  governments  of  Europe  will  get 
the  credits  that  they  need,  not  because  of  their  weakness 
but  because  of  their  strength.  Their  representatives 
come  to  us  proud,  rightly  proud,  of  their  past,  and  con- 
fident, rightly  confident,  of  their  future. 


MORNING  SESSION. 
FRIDAY,  OCTOBER  24,  10  O'CLOCK. 

The  meeting  was  opened  by  Mr.  R.  Goodwyn  Rhett, 
honorary  Vice  President  of  the  Chamber  of  Commerce 
of  the  United  States,  and  after  the  reading  of  formal  com- 
mittee reports  (printed  elsewhere)  he  said: 

Gentlemen  of  the  Conference:  A  little  over  two  years 
ago  in  September,  1918,  the  Chamber  of  Commerce  of 
the  United  States  gathered  together  in  Atlantic  City  be- 
tween 3,000  and  4,000  American  business  men  for  the 
purpose  of  giving  them  an  opportunity  to  express  their 
sentiments  and  their  purposes  with  reference  to  the  war 


198        THE  INTERNATIONAL  TRADE  CONFERENCE 

in  which  we  were  then  engaged,  and  to  provide  the  ma- 
chinery by  which  those  purposes  might  best  be  carried 
into  effect.  Some  of  you  will  remember  that  convention 
and  the  splendid  sentiment  which  emanated  from  it,  and 
particularly  that  splendid  creed,  which  was  the  first  re- 
port of  the  committee  on  resolutions,  in  which  the  busi- 
ness men  of  the  country  pledged  themselves,  dedicated 
their  facilities,  their  industries,  all  that  they  possessed, 
all  that  they  could  develop,  to  the  end  that  the  war  should 
proceed  until  Prussian  autocracy  and  imperial  autocracy 
should  be  driven  from  the  face  of  the  earth.  Two  years 
have  since  elapsed,  and  how  much  has  transpired ! 
Within  a  year  after  that  time  the  war  had  ended  and 
those  purposes  had  been  fulfilled,  and  how  splendid  a 
part  the  business  men  took  in  it,  and  how  proud  they 
may  be  of  their  contribution  toward  the  aid  which  this 
government  gave  to  the  Allies  in  the  winning  of  the 
war.  Now,,  upon  the  signing  of  the  armistice  many  of 
our  people  thought  we  ought  to  withdraw  our  forces,  de- 
mobilize and  attend  to  our  own  affairs  and  let  Europe 
attend  to  her  affairs.  Oh,  how  little  did  they  realize  what 
gas  and  electricity  and  modern  invention  had  done  to 
bring  the  word  together,  that  we  had  become  one  great 
family  and  that  no  part  of  the  world  could  run  its  own 
affairs  and  not  affect  the  affairs  of  other  parts  of  the 
world. 

It  soon  began  to  appear  that  while  we  had  a  splendid 
democracy,  that  danger  which  threatened  from  without 
had  been  overcome,  there  was  springing  up  another 
danger  within  the  democracy  that  might  be  the  tyranny 
of  the  proletariat  and  Bolshevism  fed  and  nourished  upon 
the  miseries  of  men,  miseries  based  upon  their  wants 
which  required  quick  remedy.  We  soon  began  to  realize 
that  until  the  people  of  Europe  could  be  put  to  work, 
until  their  industries  could  be  restored  and  they  should 
have  less  time  for  talking  and  thinking  of  these  vagaries 
we  would  not  have  made  the  world  safe  for  democracy. 
We  soon  learned  that  we  bore  a  very  important  part  in 
the  performance  of  that  duty,  that  Europe  needed  from 


THE  INTERNATIONAL  TRADE  CONFERENCE        199 

us  supplies  which  she  could  not  get  elsewhere,  that  there 
were  serious  problems  arising  in  connection  with  that, 
and  the  Chamber  of  Commerce  again  felt  that  the  time 
had  arisen  when  they  needed  another  gathering  here  at 
Atlantic  City.  America  was  producing  much  more  than 
she  could  consume;  she  was  absolutely  dependent  upon 
her  foreign  trade  and  her  foreign  trade  was  now  threat- 
ened, and  a  crisis  had  arisen  which  made  it  necessary  for 
the  business  men  of  this  country  to  understand  the  con- 
ditions abroad ;  they  could  only  be  understood  by  having 
men  sent  from  abroad  who  possessed  the  confidence  of 
their  governments  in  their  business  interests,  and  who 
could  come  and  tell  us  face  to  face  just  what  those  con- 
ditions and  what  those  needs  were  and  how  we  could  best 
supply  them.  So,  again,  the  Chamber  of  Commerce  has 
assembled  here  the  business  men,  and  we  have  brought  a 
splendid  delegation  from  each  of  these  four  countries, 
and  they  have  met  around  the  tables  discussing  their 
needs,  questioning  and  cross-questioning  until  now  we 
believe  we  have  a  firm  conviction  as  to  just  what  those 
conditions  are  and  just  what  it  will  be  necessary  to  sup- 
ply them. 

But  that  was  not  enough.  We  felt  that  we  should  call 
a  great  body  of  business  men  to  hear  them.  It  was  not 
sufficient  merely  to  inform  a  hundred  or  two  of  them 
on  these  committees ;  after  they  had  discussed  these  prob- 
lems with  the  committees,  they  should  come  and  present 
them  from  the  platform,  and  yesterday  we  heard  from 
the  President  of  these  committees  as  to  the  conditions 
and  as  to  the  needs  generally,  and  today  is  to  be  given  up 
to  the  problem  of  credit  and  finance.  Now,  gentlemen, 
that  is  the  crux  of  the  whole  matter,  but  after  all  it  is 
only  a  question  as  to  where  these  nations  are  going  to  get 
the  money  to  pay  for  their  needs.  That  means  a  credit 
extended  over  a  sufficient  period  in  order  to  enable  them 
to  pay  it  back  without  distress  to  themselves.  We  have 
not  heard  the  report  of  the  Committee  on  Finance  and 
Credit,  and  I  do  not  know  what  it  will  be,  but  I  believe 
it  is  hardly  a  banking  question.  It  is  a  question  of  ex- 


200        THE  INTERNATIONAL  TRADE  CONFERENCE 

tending  credit  over  a  period  of  years.  I  believe  it  will 
be  one  which  needs  the  cooperation  of  the  investors,  of 
the  people  of  this  country.  I  hope  it  will  be  such,  for  I 
think  that  the  people  of  this  country  realize  that  for  two 
and  a  half  years  the  people  of  France  and  Belgium,  Eng- 
land and  Italy,  fought  our  battles,  sent  their  men  to  fight 
and  die  for  us  before  we  realized  that  the  problem  was 
not  a  European  problem,  but  a  world  problem,  and  that 
the  threat  was  not  to  the  democracy  of  Europe  but  to  the 
democracy  of  the  world;  and  I  believe  the  American 
people  would  welcome  the  opportunity  of  expressing 
their  gratitude  and  paying  their  obligations  if  it  was 
given  them  in  any  shape  in  any  form,  so  that  they  could 
do  so. 

You  remember  when  we  were  called  upon  to  deny  our- 
selves food  because  our  soldiers  and  our  Allies  needed 
it  how  splendid  was  the  response;  you  remember  how 
splendid  was  the  response  when  we  asked  the  people  to 
cease  riding  on  Sundays  in  automobiles  because  gasoline 
had  run  short.  The  American  citizens  would  welcome  an 
opportunity  of  showing  their  gratitude,  and  it  will  be 
the  best  thing  for  them,,  for  there  is  nothing  better  for 
them  than  to  keep  on  teaching  them  to  save,  and  only 
by  these  savings  can  we  make  response  to  those  needs  of 
our  Allies,  and  I  trust  that  the  report  will  reveal  such  a 
plan,  whether  it  be  under  that  suggested  by  the  Secretary 
of  Commerce  yesterday,  or  by  one  or  more  corporations 
under  the  Edge  bill  offering  debentures  to  the  people  of 
the  country,  and  that  it  will  give  an  opportunity  to  our 
people  to  show  their  gratitude. 

How  can  we  live  in  prosperity  and  be  happy  here  hear- 
ing that  those  who  for  two  years  fought  and  died  for  us 
to  a  large  extent  are  suffering  for  the  want  of  our  sup- 
plying a  little  credit  to  them  upon  a  security  which  no 
one  in  the  world  can  question? 

Now,  gentlemen,  we  have  today  the  presentation  of 
the  finance  problem  by  those  in  the  commissions  who 
have  made  a  study  of  that  question,  and  we  are  also  hav- 
ing representatives  of  this  country,  in  order  to  present 


THE  INTERNATIONAL  TRADE  CONFERENCE        201 

the  point  of  view  of  this  government.  That  point  of  view 
we  had  yesterday  from  the  Secretary  of  Commerce,  and 
today  we  have  a  representative  of  the  Treasury  Depart- 
ment, a  gentleman  wrell  known  to  you  all,  who  was  the 
financial  adviser  of  the  American  Commission  over  at 
the  Peace  Conference,  who  is  now  the  Director  of  Finance 
for  the  Government  and  who  comes  here  today  represent- 
ing the  Secretary  of  the  Treasury.  I  take  pleasure  in 
presenting  Mr.  Norman  H.  Davis. 


Address  of  Honorable  Norman  H.  Davis, 

Representing  the  Secretary  of  the  Treasury,  on 
"International   Finance    and    Trade    Recovery." 

This  international  gathering  of  representatives  of  the 
various  branches  of  industry,  trade  and  finance,  is  a 
natural  and  most  welcome  result  of  the  close  association 
and  cooperation  instituted  and  maintained  by  the  Allied 
and  Associated  powers  during  the  war  as  a  necessity  for 
its  successful  prosecution.  Just  as  it  was  necessary  for 
each  of  those  governments  to  place  under  natural  control 
the  private  activities,  and  resources  under  its  jurisdic- 
tion, it  was  necessary  for  the  associated  powers  to  coop- 
erate in  the  use  of  such  resources  under  Interallied 
direction. 

While  such  governmental  control  was  imperative  for 
the  prosecution  of  the  war,  we,,  at  least  in  the  United 
States,  think  it  most  essential  for  the  economic  rehabili- 
tation and  industrial  development  of  the  world  that 
private  initiative  and  control,  which  developed  such  re- 
sources, should  now  be  restored.  During  four  years  of 
war  and  now  almost  a  year  of  negotiations  and  discus- 
sions of  questions  of  high  international  politics  incident 
to  a  return  to  a  peace  basis,  men's  minds  have  turned 
more  and  more  toward  governmental  action  for  the  so- 
lution of  all  problems.  This  is  not  unnatural.  It  has 


202        THE  INTERNATIONAL  TRADE  CONFERENCE 

come  to  be  a  habit  to  lean  upon  the  government  for 
everything,  since  the  governments  have  during  this 
period  assumed  control  of  activities  formerly  under 
private  control.  From  this  habit  have  come  numerous 
suggested  plans  of  governmental  action  for  the  financial 
and  industrial  rehabilitation  of  the  world  on  a  compre- 
hensive scale,  such  as  the  indefinite  extension  of  credits 
for  the  stabilization  of  exchange,  the  issuance  of  bonds 
with  the  joint  guarantee  of  the  principal  governments  to 
be  used  for  the  funding,  at  a  lower  interest  rate,  of  out- 
standing obligations  or  for  the  settlement  of  interna- 
tional balances;  and  the  more  or  less  permanent  control 
and  rationing  of  exports  and  imports  under  combined 
governmental  purchasing  agencies.  All  of  these  plans 
are  not  only  impracticable  and  abnormal,  but  econom- 
ically unsound.  Business  must  now  be  taken  out  of  lead- 
ing strings,  and,  while  given  the  moral  support  and  en- 
couragement of  governments,  must  be  left  and  enabled 
to  follow  the  ordinary  channels  of  trade  by  which  it  was 
built  up.  It  is  therefore  encouraging  to  see  the  repre- 
sentatives of  the  various  private  interests  of  the  prin- 
cipal countries  of  the  world  gathered  together  for  an 
exchange  of  views  and  information  in  an  endeavor  to 
solve  the  problems  now  confronting  the  world. 

I  understand  that  there  is,  with  minor  exceptions  of 
a  few  food  products,  no  important  world  shortage  of  ma- 
terials and  products  necessary  for  social  and  economic  re- 
quirements, but  the  principal  problem  is  to  find  the  most 
practical  and  economical  means  for  the  distribution  and 
use  of  such  supplies.  I  have  great  faith  in  the  ability 
of  the  industrial  and  financial  leaders  of  the  respective 
countries  to  work  out,,  in  cooperation,  a  satisfactory  so- 
lution and  to  do  their  share  in  restoring  the  normal  chan- 
nels of  production  and  trade.  I  am  satisfied  that  those 
who  have  led  in  the  industrial  development  of  the  world 
are  best  fitted  to  restore  normal  conditions.  Some  of 
those  present  at  this  Conference  have  had  considerable 
experience  in  international  cooperation  by  representing 
their  governments  on  various  Interallied  bodies  which 


THE  INTERNATIONAL  TRADE  CONFERENCE        203 

have  dealt  during  the  war  with  such  problems  as  food 
and  raw  material  requirements  and  the  most  economical 
manner  of  conserving  and  distributing  the  supplies  requi- 
site for  filling  the  respective  needs.  As  the  governments 
withdraw  from  such  activities  and  controls,  it  is  natural 
that  they  should  revert  to  private  channels,  and  that 
representatives  such  as  are  gathered  here  should  take 
advantage  of  the  experience  which  has  been  acquired 
during  the  war  by  governmental  cooperation  and  develop 
plans  for  private  cooperation. 

While  the  United  States  Government,  and  some  of  the 
other  governments,  have  withdrawn  practically  all  con- 
trol over  trade  and  commerce,  and  while  it  is,  in  my 
opinion,  necessary  for  all  of  the  governments  to  with- 
draw from  the  banking  business  and  as  rapidly  as  pos- 
sible discontinue  the  extension  of  governmental  credits, 
it  is  nevertheless  necessary,  during  the  transition  period, 
for  the  respective  governments  to  cooperate  as  much  as 
possible,  by  taking  such  measures  as  may  be  necessary 
to  restore  confidence  and  set  trade  and  commerce  free. 

Even  if  the  governments  were  willing  to  continue  the 
war  practice  of  extending  credits,  it  would  not  solve  the 
difficulties,  but  would  merely  prolong  and  possibly  in- 
crease them.  No  sound  or  lasting  solution  is  possible 
which  is  not  based  upon  elementary  economic  principles, 
and  the  re-establishment  of  international  trade  under 
private,  rather  than  upon  governmental  credit.  A  gov- 
ernment cannot  make  loans  without  funds  to  loan,  and 
the  only  way  it  can  obtain  those  funds  is  by  borrowing 
or  taxing.  The  governments  have  now  issued  about  all 
the  loans  their  investors  care  to  take  and  more  than  the 
savings  have  at  present  absorbed,  and  in  the  United 
States  we  cannot  well  ask  our  people  to  pay  increased 
taxes. 

Since  armistice  day,,  the  consistent  policy  of  the  Amer- 
ican Treasury  has  been,  so  far  as  possible,  to  restore 
private  initiative  and  remove  governmental  controls  and 
interferences.  It  has  been  the  view  of  the  Treasury  that 
only  thus  can  the  prompt  restoration  of  healthy  economic 


204        THE  INTERNATIONAL  TRADE  CONFERENCE 

life  be  gained.  The  embargoes  on  gold  and  silver  and 
control  of  foreign  exchange  have  been  removed,  as  well 
as  the  voluntary  and  informal  control  of  call  money  and 
the  stock  exchange  loan  account.  The  control  exercised 
by  the  Capital  Issues  Committee  over  capital  issues  has 
been  discontinued.  Thus  the  financial  markets  of  the 
United  States  have  been  opened  to  the  whole  world  and 
all  restrictions  removed  that  might  have  hindered  Amer- 
ica's capital  and  credit  resources,  as  well  as  its  great  gold 
resources,  from  being  available  in  aid  of  the  world's  com- 
merce and  Europe's  need. 

In  order  to  assist  toward  the  general  solution  of  the 
problem  of  the  financial  rehabilitation,  and  incidentally 
the  improvement  of  the  foreign  exchanges,  the  Secretary 
of  the  Treasury  has  announced  a  willingness  to  negoti- 
ate with  the  powers  for  the  funding  of  their  demand  ob- 
ligations now  held  by  the  United  States  Treasury  into 
long-time  obligations,  and  for  the  funding,  during  the  re- 
construction period,  of,  say,  two  or  three  years,  of  the 
interest  on  such  obligations.  While  such  measures  as  the 
funding  of  the  interest  and  of  the  demand  obligations 
into  time  obligations,  and  also  loans  by  the  War  Finance 
Corporation  to  American  exporters,  will  aid  most  ma- 
terially in  general  betterment  of  the  situation,  this  cannot 
of  itself  meet  the  problem.  This  must  be  coincident  with 
similar  policies  on  the  part  of  other  governments  and 
also  must  be  supplemented  most  considerably  by  private 
capital  and  initiative.  There  are  undoubtedly,  in  the 
world,  sufficient  credit  facilities  to  meet  all  legitimate, 
sound  requirements.  This  credit,  however,  will  not  be 
available  in  sufficient  quantity  until  confidence  is  com- 
pletely restored.  Confidence  will  be  restored  when  the 
bankers,  merchants,  investors  and  even  the  masses  of  the 
world  see  that  private  initiative  and  efficiency  have  been 
recovered,  and  that  the  principal  governments  are  dis- 
posed to  cooperate  in  the  maintenance  of  stability,  and 
the  freedom  of  commerce. 

This  is  natural  and  as  it  should  be,  because  until  the 
world  gets  back  to  work  and  works  efficiently  and  saves, 


THE  INTERNATIONAL  TRADE  CONFERENCE        205 

there  will  not  be  sufficient  products  to  supply  the  re- 
quirements of  the  world ;  but  if  the  world  is  at  work  and 
exchanging  services  and  commodities,  prices  will  de- 
crease and  requirements  will  be  paid  for  in  service  and 
materials.  The  industries  of  Europe,  of  course,  cannot 
be  set  to  work  without  raw  materials,  machinery,  etc., 
and,  to  the  extent  that  these  are  to  be  secured  from  the 
United  States,  the  problem  of  financing  the  restoration 
of  Europe  now  belongs  primarily  to  our  bankers  and  ex- 
porters. 

Many  people  have,,  in  my  judgment,  exaggerated  the 
credit  requirements  of  Europe,  and  underestimated  its 
fundamental  financial  and  economic  strength  and  its 
powers  of  recuperation.  They  have  apparently  calculated 
on  the  gross  requirements  without  taking  into  proper 
consideration  the  offsets  by  way  of  foreign  sources  of  in- 
come and  of  what  will  be  produced  and  furnished  in  part 
exchange.  So  recent  is  our  experience  of  the  financial 
conditions  which  existed  during  the  war — when  men 
were  devoting  themselves  to  the  business  of  destruc- 
tion— that  we  are  prone  to  overlook  the  vast  recuperative 
power  inherent  in  any  country  which,  though  devastated, 
has  not  been  depopulated,  and  the  people  of  which  have 
not  been  starved. 

In  making  estimates  as  to  Europe's  future  requirements, 
there  is  a  tendency  to  cover  a  period  which  is  longer  than, 
in  my  judgment,  seems  wise.  Still  under  the  fear,  under- 
standable in  view  of  past  war  experiences,  of  a  contin- 
ued shortage  of  commodities,  there  is  not  sufficient  al- 
lowance made  for  the  fact  that  the  production  of  wealth 
is  cumulative ;  nor  for  the  fact  that  a  considerable  period 
of  time  is  required  to  expend  wisely  for  the  purposes  of 
peace  sums  of  money  even  approximating  those  which 
were  lavishly  blown  into  fragments  within  short  periods 
while  the  war  was  in  progress.  To  this  state  of  mind  is 
added  the  impression  that  the  amount  of  available  capital 
in  the  world  is  limited,  and  not  reproductive,  and  that 
estimates  must  now  be  made  for  everything  required  over 
a  period  of  years. 


206        THE  INTERNATIONAL  TRADE  CONFERENCE 

The  effect  of  these  factors  is  to  cause  what  I  consider 
gross  overestimates  of  European  requirements,  which, 
when  they  find  their  way  into  the  newspapers  through  in- 
terviews with  people  whose  positions  entitle  their  judg- 
ment to  respect,  but  who,  in  many  cases,  are  laboring 
under  the  same  distorted  conviction,,  owing  to  the  deep 
impressions  made  on  them  by  what  they  have  seen  in 
devastated  Europe,  tend  to  create  an  impression  in  our 
community  of  a  considerable  shortage  of  commodities 
and  lead  to  a  frame  of  mind  which  lends  itself  to  the  sup- 
port of  constantly  rising  prices,  and  increases  the  diffi- 
culties of  meeting  the  situation. 

I  believe  that  the  productive  capacity  of  this  country 
heightened  as  it  has  been  by  the  war,  added  to  the  pro- 
ductive capacity  of  Europe,  as  Europe  gradually  resumes 
a  normal  activity,  will  suffice  to  supply  what  the  world 
requires  in  credit  and  commodities  as  fast  as  the  world 
is  prepared  to  use  them.  We  are  passing,  at  the  mo- 
ment, through  a  period  where  the  world  is  stocking  up 
on  commodities.  That  period  once  passed,  we  shall,  I 
think,  realize  that  there  are  commodities  enough  to  go 
around,  and  we  shall  then  run  into  a  period  of  more  nor- 
mal supply  and  demand,  with  more  reasonable  prices. 

If  Europe  is  not  at  work,  no  amount  of  credit,  even  if 
it  were  obtainable,  will  suffice,  and  it  would  be  inadvis- 
able for  Europe  herself  to  obtain  an  indefinite  amount 
of  credit  unless  she  is  working  and  saving  in  order  to 
provide  means  for  the  reimbursement  of  such  credits.  It 
appears  to  me  that  this  condition  is  now  taking  place, 
that  private  initiative  is  reviving,,  and  that  the  situation, 
while  we  are  discussing  it,  is  gradually  working  itself 
out. 

The  foreign  exchange  situation,  of  course,  increases 
the  difficulties,  but  that  is  a  question  that  cannot  be  prop- 
erly settled  by  abnormal  and  economically  unsound  meth- 
ods. It  seems  to  be  the  general  impression  that  the  pres- 
ent low  rates  of  sterling,  franc  and  lire  exchange  have 
been  caused  by  the  sale  of  exchange  for  dollars  required 
to  cover  purchase  here.  Such  is  not  the  case.  England, 


THE  INTERNATIONAL  TRADE  CONFERENCE        207 

France,  and  Italy  have,  up  to  the  present,  covered  most, 
if  not  all,  of  their  purchases  here  with  dollars  obtained 
through  credits,  and  not  by  the  sale  of  their  exchange. 
The  United  States  Treasury  has,  since  the  armistice, 
loaned  to  the  Allied  governments  approximately  $2,500,- 
000,000  to  cover  their  commitments  and  purchase  in  this 
country,,  and  the  War  Department  has  sold  to  them  on 
credit  materials  to  the  value  of  about  $500,000,000.  This 
assistance  has  gone  far  toward  supplying  their  urgent 
requirements  and  to  carry  them  through  this  transitory 
period,  and  has  aided  most  materially  in  avoiding  the 
necessity  of  selling  their  exchanges  for  dollars. 

The  present  low  rates  in  their  exchanges,  therefore, 
have  not  been  caused  by  the  purchase  of  dollars,  but  the 
sale  of  their  exchange  for  other  currencies.  The  present 
rates  of  exchange  reflect  the  sales  exchange  in  other 
markets,  a  liquidation  of  neutral  balances  during  the  war, 
a  certain  amount  of  distrust  in  the  world's  political  sta- 
bility, a  considerable  deficit  in  the  present  trade  and 
financial  balances,  and  a  certain  inequality  in  domestic 
and  financial  conditions. 

If  effective  action  were  taken  to  carry  out  a  policy  of 
stabilizing  rates  at  the  par  of  exchange,  it  could  only  be 
done  by  drawing  gold  out  of  the  United  States  when  the 
dollar  would  otherwise  be  at  a  discount,  and  by  inflating 
credit  when  the  dollar  would  otherwise  be  at  a  premium. 
Government  action  to  prevent  in  respect  to  foreign  ex- 
change, the  ordinary  operation  of  the  law  of  supply  and 
demand  in  relation  to  values  which  always  automatically 
set  in  action  corrective  forces,  and  to  prevent  the  dollar 
from  going  to  a  premium  when  its  natural  tendency  is  to 
do  so,  would  automatically  stimulate  our  exports,  and,  in 
consequence,,  through  the  competition  of  export  demand, 
increase  the  domestic  price  of  every  product.  It  would 
stabilize  or  even  aggravate  war  prices  at  the  expense  of 
further  taxes,  loans,  increased  wages,  and  maintain  the 
high  cost  of  living  at  home. 

The  view  of  the  Government  of  the  Allies,  I  take  it,  is. 
that  had  they,  after  relaxing  the  war  control  of  their 


208        THE  INTERNATIONAL  TRADE  CONFERENCE 

imports,  attempted  to  continue  to  "peg"  their  exchanges 
here  at  an  artificial  level  by  government  borrowing,  the 
effect  would  be  to  stimulate  their  imports  and  discourage 
their  exports,  thus  aggravating  their  already  unfavorable 
international  balances. 

Some  progress  has  already  been  made  in  placing  here 
through  private  channels  the  obligation  of  Allied  and  neu- 
tral European  countries  and  municipalities  loans,  all  of 
which  contribute  to  relieve  the  exchanges.  I  am  sure 
that  when  peace  is  consummated,  and  certain  political 
risks,  especially  in  respect  to  the  newly  constituted  coun- 
tries are  measurably  removed ;  when  it  is  known  just  what 
definite  policy  is  to  be  followed  in  collecting  reparation 
from  Germany;  American  exporters  and  European  im- 
porters will  lay  the  basis  of  commercial  credit  in  normal 
transactions ;  and  I  am  confident  that  American  bankers, 
in  cooperation  with  our  exporters,  will  not  fail  to  devise 
means  for  financing  the  needs  of  the  situation,  nor  Amer- 
ican investors  to  respond  to  Europe's  demand  for  capital, 
on  a  sound  investment  basis. 

It  must  not  be  overlooked  that  the  German  reparation 
may  also  serve  as  a  basis  for  the  financial  rehabilitation 
of  Europe,  provided  there  is  an  early  constructive  policy 
defined  and  announced,  which  has  due  regard,  not  only 
to  Germany's  capacity  to  pay,  but  to  what  her  creditors 
can  afford  to  have  her  pay. 

Meanwhile,  it  is  well  to  remember  the  silent  factors 
which  are  always  at  work  toward  a  solution  of  the  gen- 
eral problem.  Immigrants'  remittances  from  America  to 
Europe  are,  and  will  continue  to  be  a  very  large  item  in 
rectifying  the  exchanges.  As  soon  as  peace  is  concluded, 
foreign  travel  will  be  a  further  item.  Another  very  im- 
portant factor  is  the  purchase  of  European  securities  and 
purchases  of  foreign-held  American  securities  by  Amer- 
ican investors.  But  the  principal  factor  in  Europe's 
favor  is  the  inevitable  curtailment  of  her  imports  and  the 
expansion  of  her  exports.  These  processes,  of  course,  are 
stimulated  by  the  very  position  of  the  exchanges  which 
they  tend  to  correct. 


THE  INTERNATIONAL  TRADE  CONFERENCE        209 

It  is  probable  that  American  capital  will  also  in  ad- 
dition to  supplying  credits  to  our  European  friends,  pur- 
chase interests  in  existing  foreign  properties  and  invest 
in  new  developments  abroad.  This  would  be  a  most 
natural  and  material  aid  in  correcting  the  present  ad- 
verse balances.  International  relations  have  become  so 
interwoven  that  ignorant  rivalry  should  now  be  substi- 
tuted by  international  cooperation.  There  is  so  much  to 
do  everywhere,  and  there  are  plenty  of  opportunities  for 
all.  This  conference  will  undoubtedly  produce  a  better 
understanding  between  the  representatives  of  the  various 
countries  as  to  their  respective  requirements  and  re- 
sources, and  show  how  such  resources  can  best  be  made 
available  for  the  industrial  restoration  and  development. 
It  is  folly  to  try  to  succeed  by  any  principle  except  that  of 
efficiency  and  service,  and  I  look  upon  this  Conference 
as  the  beginning  of  international  cooperation  between  the 
industrial  and  commercial  interests  of  the  world,  which 
will  lead  to  closer  international  affiliations,  to  a  more 
commercial  use  of  the  world's  resources  and  service,  and 
consequently  to  a  new  era  of  peace  and  prosperity  in  the 
world. 


Address  of  M.  Albert  E.  Janssen, 

Professor  in   the   University  of  Louva.in,  and  Director,  National 
Bank  of  Belgium. 

The  Chairman:  Now  you  will  hear  from  the  represent- 
atives of  the  foreign  nations,  and  first  we  are  to  hear 
from  the  representative  of  the  Mission  from  Belgium, 
that  little  country  which  threw  its  army  in  the  path  of 
the  invader  at  a  critical  time  and  rendered  a  service 
which  this  country  can  never  forget.  This  address  will 
be  made  by  a  gentleman  who  is  one  of  the  five  directors 
of  the  National  Bank  of  Belgium,  M.  Albert  E.  Janssen, 
Professor  in  the  University  of  Louvain  and  Director  of 
the  National  Bank  of  Belgium. 


210        THE  INTERNATIONAL  TRADE  CONFERENCE 

M.  Janssen  said: 

Mr.  Chairman,  Ladies  and  Gentlemen:  The  exposition 
of  the  financial  situation  in  Belgium  must  necessarily  be 
divided  into  two  parts. 

First,  we  must  consider  the  banking  and  monetary 
situation. 

Second,  we  will  concern  ourselves  with  the  financial 
condition  of  the  government,  its  budget  and  loans. 

In  presenting  the  financial  statement,  which  is  natur- 
ally a  rather  dry  subject,  in  as  clear  a  light  as  possible, 
I  think  it  would  be  best  to  summarize  it  under  the  fol- 
lowing heads : 

1.  The  situation  of  Belgium  before  the  war. 

2.  A  sketch  of  the  chief  difficulties  that  confronted 
Belgium  from  the  beginning  of  the  war  until  the  armi- 
stice. 

3.  The  progress  that  has  been  made  since  the  armistice 
toward  restoring  order  and  stability  in  a  country  that 
was  ruled  for  four  years  by  an  unscrupulous  invader. 

In  this  way  I  hope  to  be  able  to  give  you  a  clear  idea 
of  the  present  financial  situation  in  my  country. 

MONETARY  AND  BANKING  SITUATION. 

The  monetary  system  of  Belgium  is  similar  to  that  in 
France,  Italy  and  Swizerland,  as  these  four  countries 
adopted  the  same  system  at  an  international  convention 
held  in  1865  and  which  is  known  as  the  Latin  Union. 

In  Belgium  the  value  of  the  franc  in  gold  was  then 
the  unit  of  measure  and  our  foreign  exchange  was  at  the 
parity  of  gold.  The  question  of  currency  was  put  into 
the  hands  of  the  National  Bank  of  Belgium  when  that 
institution  was  founded  in  1850.  Notes  were  issued  in 
1914  up  to  $200,000,000  and  were  backed  to  the  amount 
of  45  per  cent  by  a  gold  and  silver  reserve  and  by  an 
amount  55  per  cent  of  commercial  paper,  including  some 
loans  made  on  public  funds. 

The  condition  of  private  banks  was  equally  sound.  The 


THE  INTERNATIONAL  TRADE  CONFERENCE        211 

capital  and  reserve  of  35  per  cent  of  the  principal  banks 
in  the  country  totaled  $120,,000,000  in  1914  and  deposits 
amounted  to  about  $400,000,000  before  the  war. 

Thanks  to  the  richness  of  its  soil,  the  industriousness 
and  economical  tendencies  of  its  people  and  the  enterpris- 
ing spirit  of  its  business  men,  Belgium  was  enjoying  re- 
markable prosperity. 

During  the  fifteen  years  which  preceded  the  war, 
Belgium  exported  between  3,000,000,000  and  4,000,000,- 
000  francs  to  Europe,  Africa,  China,  and  South  America, 
exploiting  railways,  train  lines  and  coal  mines  in  those 
countries. 

A  tax  on  foreign  securities  that  was  imposed  in  1913 
showed  that  Belgium  held  $1,200,000,000  worth  of  for- 
eign securities. 

This  was  our  monetary  and  banking  situation  before 
the  war.  In  the  first  days  of  August,  1914,  when  the 
various  declarations  of  war  caused  unprecedented  panics 
in  the  chief  European  markets,,  the  financial  progress  of 
Belgium  instantly  halted. 

Under  such  tragic  circumstances  the  Belgium  banks 
were  confronted  with  most  serious  difficulties.  The  pub- 
lic, panic  stricken  by  the  international  political  situation, 
hastened  to  withdraw  their  deposits  from  the  banks,  and 
the  banks,  in  order  to  have  sufficient  funds  to  meet  the 
demands,  had  to  have  all  their  commercial  paper  dis- 
counted by  the  National  Bank  of  Belgium.  The  result 
was  that  in  a  few  days  $100,000,000  worth  of  additional 
paper  currency  was  in  circulation,  whereas  the  reserve 
was  diminished  by  demands  that  bills  be  cashed. 

The  German  occupation  of  Belgium  made  it  necessary 
for  the  government  to  declare  a  moratorium,  and  the 
banks  were  no  longer  compelled  to  give  coin  in  exchange 
for  bills.  When  the  war  began  we  believed  private  prop- 
erty would  be  protected  by  the  treaty  of  La  Hague.  We 
believed  that  international  treaties  were  more  than 
"scraps  of  paper,"  as  they  were  termed  by  Bethmann- 
Hoilweg. 

On  August  12,  1914,  we  were  startled  by  the  news  that 


212        THE  INTERNATIONAL  TRADE  CONFERENCE 

the  reserve  of  2,000,000  francs  had  been  seized  by  the 
Germans  by  armed  force  in  the  little  town  of  Hesselt  on 
the  frontier.  The  next  day  brought  the  report  of  the 
still  more  serious  seizure  at  Liege  of  more  than  6,000,000 
francs  from  the  branch  there  of  the  National  Bank  of 
Belgium.  The  reserve  of  private  banks  in  Liege  also  was 
taken  and  the  German  forged  signatures  on  bills  that  had 
not  yet  been  signed. 

Then,  in  rapid  succession  the  branches  of  the  National 
Bank  at  Huy,  Charleroi,  Dinan,  Nivelle,  Atho,  Mons,  and 
Ghent  reported  that  German  officers  with  squads  of  sol- 
diers with  rifles  and  bayonets  had  compelled  them  to 
throw  open  their  vaults.  But  we  lost  no  time.  By  tele- 
phone and  telegram  we  had  issued  orders  to  burn  all 
notes  that  had  not  been  sent  ahead  into  territory  not  yet 
invaded  by  the  German  Army.  So  as  the  Germans  ad- 
vanced, our  banks  sent  their  reserves  to  the  fortress  at 
Antwerp  and  from  there  to  the  solid  vaults  of  the  Bank 
of  England. 

When  on  Friday,  August  21,  at  10  o'clock  in  the  morn- 
ing, I  received  German  officers  in  the  bank  in  Brussels,  I 
had  the  personal  satisfaction  of  opening  to  their  inspec- 
tion vaults  empty  except  $100,000  worth  of  copper  coins 
that  had  been  too  heavy  to  carry  away. 

May  I  recall  for  you  a  personal  experience,  an  incident 
which  occurred  on  the  25th  of  August,  1914,  in  the 
Grande  Place  of  Brussels.  The  German  general,  who  was 
governor  of  Brussels,  called  us  together  and  told  us  that 
if  we  did  not  at  once  pay  a  $100,000,000  "war  contribu- 
tion" imposed  upon  Brussels  he  would  seize  the  valuable 
paintings  and  treasures  of  our  museum.  He  added  that 
we  could  easily  find  rich  Americans  who  would  buy  these 
priceless  possessions  of  ours  and  that  in  this  way  the 
levy  would  certainly  be  collected. 

We  anwered  without  hesitation  that  Americans  were 
too  honest  and  too  just  a  people  to  take  part  in  such 
villainy. 

One  of  the  first  acts  of  the  German  Government  in 
Belgium  was  to  place  all  banking  business  under  the 


THE  INTERNATIONAL  TRADE  CONFERENCE        213 

most  rigid  control.  The  Germans  dismissed  our  own 
governor  and  took  over  to  themselves  the  authority  to 
issue  banknotes.  But  as  it  was  necessary  to  insure  the 
economic  life  of  the  nation,  the  Societe  Generale,  the 
main  head  of  all  private  banks  in  Belgium,  quite  in  agree- 
ment with  the  National  Bank  of  Belgium,  was  directed 
and  empowered  to  issue  banknotes  which  were  to  be  made 
good  by  the  National  Bank  after  the  war. 

It  is  not  possible  in  this  statement  to  enter  into  details 
concerning  all  the  arbitrary  acts  of  the  Germans  in  Bel- 
gium. But  let  me  say  to  you  that  one  of  their  most  op- 
pressive acts  was  in  compelling  everybody  in  Belgium, 
under  martial  law,  to  receive  German  marks  at  the  rate 
of  one  franc  twenty-five,,  for  each  mark.  It  was  a  dom- 
inating fact  which  still  today  has  a  deep  influence  upon 
our  monetary  situation.  Because  Belgium  did  not, 
naturally,  want  to  exchange  good  money  for  what  they 
considered  bad  money,  they  concealed  their  money  and 
all  our  bank  notes  disappeared  from  circulation.  Very 
quickly  the  country  was  flooded  with  German  marks  of 
all  value  and  descriptions.  A  great  many  marks  came 
from  Germany  and  from  Holland  as  the  result  of  German 
speculation  in  exchange. 

Of  approximately  $200,000,000  discount  bills  made  by 
the  National  Bank  of  Belgium  at  the  beginning  of  the 
war,  about  four-fifths  of  $160,000,000  were  reimbursed 
by  marks  which  the  bank  was  compelled  to  receive  at  the 
rate  of  one  franc  twenty-five.  The  Germans  threatened 
us  with  deportation  to  Germany  if  we  did  not  accept  the 
marks  in  payment. 

New  business  during  the  war  was  nil.  It  could  not  be 
otherwise.  The  general  trade  of  Belgium  with  foreign 
countries,  which  had  amounted  to  more  than  $2,000,000,- 
000  a  year  was  paralyzed  by  the  war.  Our  foundries 
and  factories  were  closed.  Use  of  our  harbors — Ant- 
werp, Ghent,  Ostend — was  denied  us.  Our  industrial 
and  trade  organizations  were  ruined  by  German  requi- 
sitions. In  fact,,  all  our  activities  were  prohibited.  We 
could  not  produce.  The  inevitable  consequence  was  that 


214        THE  INTERNATIONAL  TRADE  CONFERENCE 

1,500,000  people  were  without  work.  They  could  have 
found  employment  with  the  Germans,  but  they  refused 
such  work  because  of  a  high  spirit  of  patriotism. 

It  was  these  people  the  Commission  for  Relief  in  Bel- 
gium had  to  feed  and  clothe  and  did  under  the  direction 
of  Mr.  Hoover,  who  gave  to  the  world  a  noble  and  never- 
to-be-forgotten  example  of  human  effort  for  which  the 
people  of  Belgium  shall  be  enternally  grateful  to  the 
United  States  of  America.  I  remember,  myself,  gentle- 
men, that  in  all  the  towns  and  little  villages  of  my  coun- 
try where  were  branches  of  the  Relief  Commission  there 
floated  the  flag  of  your  country.  But,  after  a  few  months 
the  Germans  would  not  permit  your  Stars  and  Stripes  to 
fly,  and  it  was  with  great  regret  that  we  saw  the  Amer- 
ican flags  pulled  down. 

But  the  colors  of  your  national  banner  remained  en- 
graved in  our  hearts  and  we  were  able  to  salute  your 
flag  again  when,  after  four  years  of  terrible  life,  the 
armistice  came  and  with  it  the  joyous  return  of  our  King 
to  Brussels  at  the  head  of  his  own  victorious  troops  and 
soldiers  of  America  and  the  armies  of  France  and  Great 
Britain. 

The  first  financial  step  the  Belgian  government  took 
directly  after  the  armistice  was  to  withdraw  all  Ger- 
man marks  which  were  in  circulation.  A  total  of  6,000,- 
000,000  marks  was  taken  out  of  circulation  and  the  gov- 
ernment gave  to  the  Belgian  people  in  return  Belgian 
currency  at  the  rate  of  1.25  for  the  mark,,  to  enable  them 
to  renew  their  indusries.  At  that  time  the  National 
Bank  advanced  the  government  $1,160,000,000.  It  was 
not  so  much  a  business  as  a  monetary  operation  consist- 
ing in  substituting  our  own  money  for  the  depreciated 
mark.  Our  issue  of  bank  notes  which  before  the  war 
had  been  $200,000,000  increased  to  $950,000,000.  But  it 
could  not  be  avoided.  We  had  to  make  the  exchange  in 
order  to  revive  our  industrial  life. 

But  I  can  assure  you  that  reduction  of  our  issue  of 
notes  today  is  an  important  feature  of  our  finance  pol- 
icy. We  fully  realize  that  the  inflation  of  notes  has  al- 


THE  INTERNATIONAL  TRADE  CONFERENCE        215 

ways  provoked  a  depreciation  of  the  monetary  unity  and 
contributed  to  the  high  cost  of  living.  The  economic  re- 
juvenation of  Belgium  calls  for  a  concentration  of  all 
our  efforts  to  diminish  the  cost  of  living  which  is  so  inti- 
mately related  to  the  question  of  salary  and  wages. 
Therefore  the  government  and  the  National  Bank  of 
Belgium  are  determined  to  prevent  any  increase  in  issue 
notes.  No  more  advances  of  notes  will  be  made  by  the 
bank  to  the  State  and  efforts  will  be  concentrated  on 
keeping  the  issue  of  notes  down.  Their  success  in  this 
naturally  depends  to  some  extent  upon  how  quickly  Bel- 
gium can  liquidate  the  six  billion  marks  which  are  today 
in  the  vaults  of  the  National  Bank. 

As  concerns  the  private  banks,  I  take  great  satisfac- 
tion in  saying  to  you  that  they  have  weathered  the  storm 
well  and  all  are  today  in  excellent  shape,  well  equipped 
to  contribute  to  the  economic  and  industrial  reconstruc- 
tion work  in  Belgium.  During  the  last  month  there  has 
been  established  an  important  bank  named  the  National 
Company  for  Credit  to  Industry,  which  will  extend  credit 
to  industries  and  which  will  play  a  big  part  in  the  under- 
taking of  repairing  the  damage  done  during  the  war. 
Many  of  our  private  banks  have  doubled  or  increased 
their  capital  and  reserve  since  the  armistice.  The  con- 
fidence of  the  public  in  the  banks  is  shown  by  the  fact 
that  deposits  in  the  banks  which,  before  the  war, 
were  $400,000,000  today  are  double  that  amount — 
$800,000,000. 

So  you  see,  national  money  is  abundant  and  cheap  in 
Belgium  today.  The  discount  rate  at  present  is  31/2  per 
cent. 

Before  the  war  the  financial  situation  of  the  Belgian 
State  was,  briefly,  as  follows : 

The  annual  budget  was  $160,000,000  and  its  equi- 
librium always  was  assured  by  a  sane  and  wise  financial 
policy.  The  total  amount  of  our  debt  previous  to  the 
war  was  about  one  billion  dollars.  The  greatest  part  of 
this  sum  was  used  to  construct  railroads,  canals,  harbors, 
which  belong  to  the  State.  Because  we  had  always  been 


216        THE  INTERNATIONAL  TRADE  CONFERENCE 

at  peace  we  had  no  navy,  and  because  we  had  a  sound 
system  of  finance  our  debts  before  the  war  had  been  of 
direct  benefit  to  the  nation  because  they  were  contracted 
for  public  improvements,  which  proved  sufficient  to  as- 
sure the  remuneration  and  redemption  of  the  capital. 

Such  debts  do  not  trouble  us  today. 

Two  months  after  the  war  began  the  seat  of  our  gov- 
ernment was  removed  to  Le  Havre  where  our  ministers 
and  departments  accepted  the  very  gracious  hospitality 
of  the  French.  Except  for  a  few  villages  and  fields  along 
the  Yser  River,  which  was  the  theater  of  military  oper- 
ations, the  Belgian  Government  did  not  possess  any  ter- 
ritory in  which  taxes  could  be  collected.  German  occupa- 
tion made  it  impossible  to  borrow  money  to  meet  de- 
mands upon  the  Belgian  treasury. 

For  our  war  expenses  the  French,  English  and  United 
States  made  advances  to  Belgium  which,,  at  the  time  of 
the  armistice,  were  about  one  billion  dollars. 

The  Peace  Treaty  provides,  as  you  know,  that  Ger- 
many shall  reimburse  Belgium  in  the  form  of  gold  bonds 
for  loans  made  by  the  Allies  before  the  armistice. 

Heads  of  the  delegations  at  the  Peace  Conference — 
President  Wilson,  Premier  Clemenceau  and  Lloyd 
George — have  said,  in  a  letter  they  wrote  on  June  16, 
1919,  to  our  Foreign  Minister  "to  recommend  to  their 
respective  parliamentary  bodies  that  German  reparation 
bonds  be  substituted  for  advances  made  by  the  Allies  to 
Belgium,  thus  cancelling  the  debt." 

Since  the  armistice  we  have  contracted  an  external  debt 
of  $260,000,000,  with  which  our  Allies  will  be  paid  out 
of  the  first  German  reparation  payments.  The  internal 
debt  contracted  by  our  Government  since  the  war  to  the 
amount  of  $1,500,000,000  to  make  up  for  the  six  billion 
marks  will  be  paid  when  we  liquidate  the  marks.  In  view 
of  these  facts  our  Minister  of  Finance  announced  at  a 
meeting  of  Parliament,,  the  beginning  of  this  month,  that 
our  unpaid  debt  of  pre-war  expenses  and  forced  war  con- 
tributions will  remain  about  $1,200,000,  which  must  be 


THE  INTERNATIONAL  TRADE  CONFERENCE        217 

covered  by  loans,  of  which  the  greatest  part  already  has 
been  raised. 

Owing  to  a  necessary  increase  in  the  salaries  of  gov- 
ernment employees  as  a  result  of  increased  cost  of  living, 
the  Finance  Minister  has  estimated  that  the  annual 
budget  must  be  raised  $100,000,000.  New  taxes  already 
levied  and  taxes  actually  submitted  to  parliament  will  be 
sufficient  to  cover  this  increase.  It  is  a  small  sum  to  you, 
perhaps,  but  a  large  one  to  us.  But  the  future  would, 
however,  be  very  difficult  to  any  Finance  Minister.  We, 
no  doubt,  shall  receive  the  indemnities  from  Germany 
imposed  by  the  Peace  Treaty,  but  how  many  years  we 
shall  have  to  wait  is  a  matter  of  doubt.  In  the  mean- 
time,, our  wrecked  industries,  our  destroyed  cities  and 
our  business  institutions  ruined  by  German  requisitions, 
must  be  provided  at  once  with  money  to  enable  them  to 
get  back  to  normal  again.  We  must  insist  upon  our 
claims  against  Germany  being  paid  soon. 

That  is  the  critical  phase  of  the  situation.  The  gov- 
ernment has  expressed  the  hope  that  Parliament  will  be 
enabled  to  submit  a  solution  of  this  problem  on  the 
handling  of  which  depends  the  future  of  Belgium.  It 
must  be  added  that  the  German  occupation  forced  upon 
us  a  very  difficult  financial  situation.  That,  gentlemen, 
is  a  brief  and  frank  summary  of  the  situation  in  Bel- 
gium. Be  assured  that  Belgium  is  determined  to  make 
all  necessary  sacrifices  to  restore  her  finances  to  a  normal 
status  because  sound  finance  is  the  best  way  my  country 
can  take  to  fortify  and  facilitate  the  internal  and  exter- 
nal credit  we  must  ask  for  this  work  of  restoration. 

The  question  of  our  foreign  exchange  rate  was  one  of 
the  greatest  problems  our  country  had  to  meet  after  the 
armistice.  During  the  war  our  foreign  exchange  was 
not  quoted,  naturally.  However,  the  German  orders,  im- 
posing upon  us  during  the  occupation,  the  mark  at  the 
rate  of  one  franc  twenty-five  had  a  bad  effect  of  solidar- 
izing  our  money  with  the  depreciated  value  of  the  mark. 

During  the  German  occupation  all  trade  and  commer- 
cial relations  between  Belgium  and  other  countries 


218        THE  INTERNATIONAL  TRADE  CONFERENCE 

ceased.  We  were  denied  trade  and  commerce  with  the 
outside  world  by  a  great  barrier.  Our  country  was  as  a 
prisoner.  The  liberation  of  Belgium  after  the  armistice 
put  an  end  to  this  state  of  affairs,  but  how  difficult  was 
the  position  we  found  ourselves  in. 

Despoiled  of  our  raw  materials,  machinery,  etc.,  Bel- 
gium was  compelled  to  turn  to  other  countries  for  those 
things  we  formerly  had  exported  ourselves.  We  had  to 
obtain  from  foreign  countries  the  credits  necessary  to 
compensate  for  our  international  balance  of  payments. 

In  December,,  1918,  the  Belgian  Government  obtained 
from  England  a  credit  of  9,000,000  pounds  sterling  to 
facilitate  the  purchase  of  our  industries  from  England 
of  badly  needed  raw  materials  and  machinery. 

Private  credits  were  obtained  by  Belgian  banks  united 
in  a  group  presided  over  by  the  National  Bank  of  Bel- 
gium and  guaranteed  by  the  State  under  a  law  enacted 
March  16,  1919. 

An  important  group  of  banks  in  the  United  States  has 
consented  to  give  Belgian  banks  an  export  credit  of 
$50,000,000  and  $25,000,000  has  been  furnished  by  a  syn- 
dicate of  the  principal  banks  of  London.  Similar  loans 
were  negotiated  with  the  banks  of  Norway  and  Switzer- 
land. The  revival  of  our  coal  mines,  which  produce 
already  90  per  cent  of  the  normal  production  before  the 
war,  permit  us  to  make  large  export  of  coal  to  France, 
and  to  maintain  a  good  exchange  with  Paris. 

What  we  must  have  in  the  future  is  long-time  credit — 
ten  to  twenty  years.  As  late  as  February  the  exchange 
rate  on  the  dollar  was  five  francs  fifty,  which  is  a  70 
per  cent  increase  over  the  normal  rate.  Under  such  con- 
ditions it  is  natural  we  should  only  buy  in  the  United 
States  the  raw  materials  and  food  products  which  are 
absolutely  needed  by  us  for  the  reason  that  the  increase 
of  70  per  cent  in  exchange  rate  is  equal  to  a  70  per  cent 
export  tax  which  should  be  imposed  by  the  United  States 
on  exports  to  my  country.  We  are  all  interested,  you  and 
we,  in  reducing  the  price  of  the  dollar  so  that  trade  may 
get  back  to  normal.  The  only  manner  in  which  to  reduce 


THE  INTERNATIONAL  TRADE  CONFERENCE        219 

the  price  of  the  dollar  today  will  consist  in  the  credit  that 
the  United  States  should  allow  Europe  for  some  years. 
You  must  do  today  for  us  what  we  have  done  for  you 
in  the  past. 

I  know,  gentlemen,  that  credit  must  be  based  upon  con- 
fidence. I  will  say  to  you  that  you  may  have  confidence 
in  Belgium.  Bolshevism  cannot  exist  in  victorious  coun- 
tries with  our  free  constitution  and  our  democratic  in- 
stitutions, the  oldest  on  the  continent.  We  are  rapidly 
getting  back  our  old  stride.  We  have  a  great  division  of 
property  in  Belgium.  The  farms  are  nearly  all  very 
small.  Four  hundred  million  dollars  are  deposited  in  the 
Savings  Banks  of  Belgium,  which  have  three  million  de- 
positors, mostly  of  the  low  classes,  out  of  a  population  of 
7,500,000.  When  so  many  people  are  saving  and  con- 
servative they  do  not  go  blindly  into  political  ventures. 

Then,  too,  gentlemen,  we  have  fortunately  a  good  and 
democratic  King,  who  is  intimately  acquainted  with  the 
needs  of  his  country.  I  remember  something  the  King 
said  to  the  people  when  he  triumphantly  came  back  to 
Brussels  to  receive  the  royal  acclaim  and  allegiance  of 
all  classes,  capital  and  labor  alike.  The  King  said, 
"Order  is  the  basis  of  social  life.  Without  order,  social 
life  cannot  be  developed.  But  good  order  does  not  con- 
sist in  a  forced  submission  to  unnatural  or  outside  com- 
pulsion. It  must  be  a  common  accord  of  the  hearts  and 
minds  of  all,  so  that  the  spirit  of  fraternity  and  har- 
mony inspires  a  patriotic  duty  and  just  care  of  the  main- 
tenance of  law  and  order." 

So  said  our  King,  and  his  counsel  is  the  good  star 
which  guides  us. 

Gentlemen,  in  undertaking  the  great  task  of  econom- 
ical reconstruction  an  imperative  duty  is  imposed  on  the 
people  of  Belgium.  They  must  stand  united  to  produce. 
Production  must  be  the  rule  of  all.  There  must  be  strict 
economy  on  the  part  of  individuals  and  the  government. 
It  is  necessary  that  we  produce  to  the  maximum  of  our 
power  and  consume  the  least  possible  so  that  our  export 


220        THE  INTERNATIONAL  TRADE  CONFERENCE 

trade  may  grow  rapidly  and  the  returns  from  it  meet  the 
deficit  of  our  payments  on  international  debts. 

That  is  the  fundamental  principle  upon  which  indus- 
trial and  commercial  restoration  must  be  based  in  our 
country,  whose  sources  of  production  were  so  ruthlessly 
destroyed  by  the  invader.  We  are  not  a  race  easily  dis- 
couraged. On  the  contrary,  we  have  confidence  in  our- 
selves, in  the  industriousness  and  thrift  of  all  Belgians, 
characteristics  which  the  people  of  Belgium  ever  have 
possessed.  Our  country  will  rapidly  recover.  You  have 
proof  of  that  in  what  we  already  have  accomplished  since 
the  armistice. 

We  hope  and  firmly  believe  that  ten  years  from  now 
when  Belgium,  in  1930,  will  celebrate  the  glorious  centen- 
ary of  this  independence,  we  shall,  as  we  were  able  to 
show  in  August,  1914,  show  anew  to  the  world  what  the 
energy  of  the  people  of  Belgium  can  do  to  make  a  pros- 
perous and  progressive  nation. 


Greeting  From  Belgian  Engineers. 

The  Chairman:  Ladies  and  gentlemen,  I  have  just  re- 
ceived a  telegram  which  I  wish  to  read  to  you.  It  is  from 
M.  Edward  J.  Hubaux,  of  Charleroi,  Belgium.  The  tele- 
gram reads : 

"In  the  name  of  the  Association  of  Commercial  Engi- 
neers, Brussels,  also  of  the  present  students  at  the  'Com- 
mercial Institute  of  Manufacturers  of  Hainaut'  (Bel- 
gium), I  have  the  honor  and  pleasure  to  convey  to  the 
International  Trade  Conference  of  the  United  States 
Chamber  of  Commerce  and  the  Foreign  Missions  gath- 
ered here,  the  best  wishes  for  success  from  all  our  mem- 
bers scattered  all  over  the  world  who  are  with  you  heart 
and  thought.  They  are  ready  and  willing  to  cooperate 
with  you  as  they  have  done  in  the  past  and  will  always 


THE  INTERNATIONAL  TRADE  CONFERENCE        221 

do  in  the  future  for  the  triumph  of  our  noble  cause ;  the 
complete  liberation  of  our  free  lands  from  the  German 
spirit  of  world-wide  domination  in  industry  and  com- 
merce. 

(Sgd.)  "EDWARD  J.  HUBAUX, 

"Charleroi,  Belgium." 


Address  of  M.  Le  Baron  Du  Marais. 

(Read  by  M.  Eugene  Loizeau.) 

The  Chairman:  Now,.  Ladies  and  Gentlemen,  we  are 
going  to  hear  from  France,  that  country  which  gave  us 
liberty  in  time  of  our  need,  and  that  country  which  gave 
more  men  and  materials  than  any  other  in  this  war. 
Her  case  will  be  presented  by  one  very  eminent  in  France, 
the  President  of  the  Credit  Lyonnais,  and  Vice-President 
of  the  French  Mission,  M.  Le  Baron  Du  Marais.  Owing 
to  a  cold  the  Baron  tells  me  that  he  is  unable  to  read  his 
address.  He  has  therefore  requested  another  eminent 
member  to  read  it  for  him,  an  eminent  engineer  of  Paris, 
an  expert  adviser  of  the  Credit  Lyonnais,  M.  Eugene 
Loizeau. 

The  address  of  Baron  Du  Marais  follows : 

Gentlemen:  Several  weeks  after  the  signature  of  the 
armistice  I  met  one  of  our  best-known  generals.  As  he 
knew  the  terrific  strain  which  our  country  had  under- 
gone, he  asked  whether  France,  victorious  in  arms,,  could 
still  muster  up  sufficient  strength  to  bear  the  financial 

burden  that  five  years  of  continuous  warfare  had  imposed 

upon  her.    I  simply  replied : 

''During  the  most  trying  days  of  the  struggle  you 
never  doubted  your  soldiers.  The  signing  of  the  armi- 
stice has  not  ended  the  war.  It  has  merely  transposed 
the  field  of  battle.  Why  not  have  the  same  confidence  in 
the  worker  of  France  as  we  have  all  had  in  the  soldier  of 
France.  He  is  one  and  the  same  man." 


222        THE  INTERNATIONAL  TRADE  CONFERENCE 

Facts  later  ratified  this  confidence.  Little  by  little, 
slowly  but  systematically,  the  transition  from  the  state 
of  war  to  that  of  peace  took  place.  The  problems  of  the 
new  era  presented  themselves  for  examination.  I  cannot 
say  that  they  have  been  solved.  The  most  urgent  have 
already  been  approached  and  solution  is  already  in  sight. 
So  that  today,  at  your  invitation,  before  this  Assembly, 
composed  of  the  great  business  men  of  the  new  world, 
deemed  its  men  of  thought  and  of  action,  companions  all 
in  struggle  and  friends  all  of  France,  I  have  the  honor 
to  present  to  you,  in  the  name  of  the  French  Delegation, 
a  general  expose  of  the  financial  situation  in  France. 

I  shall  take  up  first  the  French  budget  of  1913  and  then 
the  one  now  in  force.  I  shall  then  reckon,  based  upon  re- 
liable data,,  the  yearly  expenditures  of  the  after-war  pe- 
riod and  measure  the  amount  of  new  taxation  that  must 
be  met  in  order  to  balance  the  budget.  This  reckoning 
takes  into  account  the  increase  in  resources  that  will 
come,  first,  from  the  northern  regions  of  France  when 
their  economic  life  has  been  resumed,  and,  second,  from 
Alsace  and  Lorraine  when  they  will  be  fiscally  reunited 
with  France. 

We  shall  next  consider  the  reconstruction  of  the  devas- 
tated regions  and  the  quantity  of  raw  materials  and 
manufactured  articles  that  will  be  required  during  the 
period  of  reconstruction. 

These  facts,  when  analyzed,  will  dictate  the  financial 
means  that  must  be  employed  to  meet  our  needs  and  will 
bring  us  to  the  discussion  of  the  disturbance  of  the  ex- 
change. This  disturbance  is  the  visible  symptom  of  our 
present  ailment  and  will  disappear  of  itself,  together 
with  the  ailment,  when  we  have  returned  to  the  normal 
conditions  of  life. 

THE  FRENCH  BUDGET. 

The  French  budget  in  1913  amounted  to  $1,020,000,000. 
Of  this,  less  than  $860,000,,000  came  from  that  part  of 
France  which  did  not  later  suffer  invasion. 


THE  INTERNATIONAL  TRADE  CONFERENCE        223 

This  year  this  same  section  will  pay  into  the  Treasury 
almost  the  total  amount  of  the  budget  of  $2,000,000,000, 
which  constitutes  an  increase  in  burden  of  120  per  cent 

From  the  above  figures  alone  you  can  judge  how  un- 
justified it  would  be  to  accuse  us  of  not  having  exerted 
ourselves  sufficiently  to  increase  our  taxation  to  a  reason- 
able degree. 

If  you  take  into  consideration  the  fact  that  40  per 
cent  of  the  male  population  of  France  was  mobilized,  you 
will  have  to  acknowledge  that  few  countries,  in  such  cir- 
cumstances, would  have  been  able  to  attain  equal  results. 

These  two  billion  dollars  which  the  Treasury  will  have 
at  its  disposal  in  1919  will  be  enough  to  pay  all  the  civil- 
ian expenditures  of  our  budget,  including  the  entire  in- 
terest on  the  public  debt. 

We  have  a  right  to  be  pleased  with  this  result,  but  we 
shall  not  halt  at  this  stage.  Our  Minister  of  Finance 
recognized  this  fact  when  he  proposed  to  Parliament  new 
taxes  amounting  to  360,000,000  dollars.  These  taxes  are 
to  be  considered  at  the  next  session  of  Parliament,  which 
is  scheduled  to  convene  immediately  after  the  coming 
election.  At  any  rate,  the  fact  remains  that,  on  the  aver- 
age, each  French  citizen  will  pay  into  the  National  Treas- 
ury during  1919  about  $56,  whereas  in  the  United  States, 
according  to  the  National  Budget,  each  American  citizen 
will  be  required  to  pay  into  the  Federal  Treasury  only 
$49.78. 

Let  us  see  how  the  budget  will  balance  after  the  war, 
when  the  public  debt  has  been  funded,  when  the  increase 
in  the  salaries  of  our  public  employes  will  have  to  be 
faced,  and  when  provision  will  have  to  be  made  for  mili- 
tary pensions,  as  a  guaranty  at  least. 

The  interest  on  the  public  debt  will  amount  on  a  capital 
of  40  billion  dollars  to  2  billion  dollars.  Civilian  expen- 
ditures amounting  to  380  million  dollars  in  1913,  will 
probably  reach  900  million  dollars.  Military  and  naval 
expenditures  will  reach  400  million  dollars,  making  a 
total  of  3  billion  300  million  dollars.  To  this  total  we 


224        THE  INTERNATIONAL  TRADE  CONFERENCE 

may  add  pensions  amounting  to  800  million  dollars,  rais- 
ing the  grand  total  to  4  billion,  100  million  dollars. 

With  what  resources  shall  we  meet  these  appropria- 
tions? 

To  the  resources  of  1919,  equaling  2  billion  dollars 
must  be  added  the  share  of  the  devastated  regions  in 
their  before-war  proportion  to  the  whole  of  France 
amounting  to  400  million  dollars.  Alsace  and  Lorraine, 
highly  developed  industrial  regions,  will  furnish  200  mil- 
lion dollars.  The  increase  over  the  present  yield  of  taxes, 
without  enacting  a  change  in  rate,  is  expected  by  experts 
to  reach  200  million  dollars.  This  increase  will  result  from 
the  reorganization  of  the  ranks  of  tax  collectors  which 
were  so  depleted  by  mobilization  as  to  make  it  impossible 
for  those  who  remained  to  meet  their  overburdened  du- 
ties, which  included  the  paying  of  allotments  and  other 
gratuities  to  the  families  of  soldiers.  The  increase  in 
railroad  tariff,  which  has  become  an  absolute  necessity, 
will  bring  in  from  net  earnings,  and  a  decrease  of  guar- 
anteed interest  paid  by  the  State,  about  150  million  dol- 
lars, making  a  total  increase  of  950  million  dollars,  which 
raises  existing  taxes  as  they  now  stand  to  2  billion,  950 
million  dollars. 

To  fill  the  gap  between  this  figure  of  2  billion  950  mil- 
lion dollars  and  our  expenditures  of  4  billion  100  million 
dollars,  which  include  military  pensions  (although  these 
are  really  part  of  the  German  indemnity) ,  an  increase  of 
50  per  cent  above  the  present  taxes  will  be  more  than 
sufficient.  Undoubtedly,  this  increase  is  large  but  need 
not  be  feared  when  we  consider  what  the  people  of 
France  have  already  achieved. 

I  have  introduced  the  above  figures  to  show  that  the 
credit  of  France  does  not  depend  entirely  upon  the  ful- 
filment of  the  obligations  to  which  Germany  is  pledged. 
According  to  the  Treaty  of  Peace,  Germany  is  to  repay 
pensions  that  have  been  paid  to  widows,  children  left 
fatherless  by  the  war  and  mutilated  soldiers.  This  re- 
fund will  be  available  in  part  to  reduce  the  taxation  that 
is  needed  to  balance  our  budget  and  chiefly  to  create  an 


THE  INTERNATIONAL  TRADE  CONFERENCE        225 

amortization  fund  which  no  Minister  of  Finance  will 
dare  to  forget  in  the  face  of  so  great  a  public  debt. 

You  may  therefore  be  assured,  gentlemen,  that  the  pub- 
lic finances  of  France  are  in  such  shape  as  to  make  us 
feel  absolutely  secure  about  the  balancing  of  our  budget 
and  the  recovery  of  our  country. 

The  French  citizen  is  already  heavily  taxed;  he  knows 
perfectly  well  that  he  is  to  pay  still  more.  With  quiet 
fortitude  he  will  accept  the  burden  of  the  further  taxa- 
tion that  balancing  the  budget  makes  necessary.  He 
deems  this  task  light  in  comparison  with  the  one  he  has 
accomplished  during  the  four  years  of  warfare. 

THE  DEBT  OF  FRANCE. 

As  to  the  debt  of  France  which  reached  5  billion  600 
million  dollars  before  the  war,  it  has  now  mounted  to  40 
billion  dollars.  This  figure  might  appear  disquieting  if 
it  were  not  for  the  fact  that  our  foreign  debt  constitutes 
but  a  small  part  of  it,  namely  6  billion  dollars.  Moreover, 
we  can  oppose  to  this  foreign  debt,  the  still  larger  amount 
that  is  owed  France  by  Eastern  and  Central  Europe. 
France  cannot  realize  these  credits  today  but  will  un- 
doubtedly be  able  to  do  so  in  the  future. 

It  must  be  emphasized,  however,  that  the  realization 
of  our  budget  depends  upon  the  following  factors  : 

1.  The  rapid  restoration  of  the  devastated  regions  of 
France. 

2.  The  resumption  of  activity  in  all  the  manufacturing 
plants  of  France,  based  upon  their  being  supplied  with 
a  sufficient  amount  of  raw  materials. 

REPARATION  OF  WAR  LOSSES. 

The  Treaty  of  Peace  holds  Germany  responsible  for 
war  losses. 

Unfortunately,  the  extent  of  these  losses  is  so  great 
that  they  who  negotiated  Peace  found  it  impossible  to 
devise  practical  means  by  which  Germany  could  pay, 


226        THE  INTERNATIONAL  TRADE  CONFERENCE 

within  a  limited  period,  the  full  sums  that  would  cover 
total  losses. 

As  a  result,  France  will  be  obliged  to  advance  the  sums 
to  be  expended  which  will  reach  a  very  elevated  figure 
since  it  is  essential  above  all  that  reparation  be  effected 
within  the  shortest  time  possible.  This  is  of  supreme 
importance  because  France  will  be  entirely  absorbed  in 
the  work  of  reconstruction  until  it  is  completed.  Conse- 
quently,, particularly  in  view  of  her  depleted  equipment, 
she  will  not  be  able  to  regain  her  place  in  the  world 
markets  save  slowly  and  to  a  very  limited  degree. 

It  is  precisely  at  this  point  that  France  may  require 
the  cooperation  of  the  United  States  to  secure  through 
credits,  the  means  of  paying  for  merchandise,  raw  ma- 
terials and  manufactured  articles,  which  she  could  obtain 
in  return  for  her  exports  under  normal  circumstances. 

France  can  give  as  guaranty  for  these  advances  the 
German  bonds  which  the  Treaty  of  Peace  allots  to  her. 
She  has  no  doubt  that  these  bonds  will  be  paid  at  their 
maturity  but,  in  the  event,  which  is  most  improbable, 
that  Germany  does  not  meet  her  obligations,  France 
would  not  think  it  fair  to  have  the  entire  burden  of  re- 
construction fall  upon  her. 

Upon  France  has  just  been  conferred  the  tragic  honor 
of  serving  as  the  battlefield  of  Europe.  She  has  shielded 
Europe  from  the  barbarians.  If,  unfortunately,  she 
should  be  left  alone  to  rear  up  the  cities  and  villages 
which  the  children  of  America  and  England,  struggling 
side  by  side  with  the  soldiers  of  France,  saw  crumbling 
into  ruins,  she  would  not  despair.  She  would  merely  take 
up  her  tasks.  But  it  would  mean  that  her  wounds  would 
take  longer  to  heal.  She  would  toil  on  in  suffering  and 
suffering  does  not  always  inspire  wisdom. 

History  shows  that  suffering  often  transforms  into 
violent  movements  evolutions  that  are  in  themselves  most 
legitimate  and  no  one  can  foretell  the  far-reaching  reper- 
cussions of  these  movements. 


THE  INTERNATIONAL  TRADE  CONFERENCE        227 

FOODSTUFFS  AND  RAW  MATERIALS. 

France  requires  additional  food  products  for  her 
people  and  raw  materials  for  her  plants.  Competent 
commissions  have  estimated  importations  of  food  at 
about  150  million  dollars,  but  these  imports  will  not  come 
entirely  from  America. 

Our  cotton  industry  requires  about  1,100  thousand 
bales  of  cotton,  the  value  of  which,  delivered  in  Havre,  fa 
figured  at  200  million  dollars. 

Our  plants  require  about  100,000  tons  of  copper  which 
will  cost  us  about  70  million  dollars. 

Our  consumption  of  oil  and  gasoline  will  probably 
reach  a  total  of  75  million  dollars. 

The  above  items  bring  us  to  a  figure  of  about  500  mil- 
lion dollars  to  cover  our  needs  for  the  year  1920. 

We  must  add  to  this  our  requirements  in  chemicals,  to- 
bacco, metallurgical  products,  fuel  oil  and  coal  amount- 
ing altogether  to  from  100  to  150  million  dollars,  without 
counting  various  other  articles  that  will  be  imported  in 
the  course  of  trade. 

The  rise  in  the  cost  of  raw  materials  and  the  increase 
in  ocean  freight  rates  have  already  imposed  a  heavy  bur- 
den upon  France.  The  rise  in  exchange  that  has  taken 
on  altogether  extraordinary  proportions  within  the  last 
few  months  threatens  to  make  the  cost  of  material  deliv- 
ered in  France  almost  prohibitive. 

It  is  to  improve  this  condition  that  we  must  devise 
means. 

EXCHANGE. 

Depreciation  in  exchange  is  not  an  isolated  phenome- 
non. It  is  the  visible  sign  of  unfavorable  economic  con- 
ditions and  of  *  insufficient  means  of  payment  available 
for  the  nation  suffering  from  the  depreciation  which  is 
itself  a  consequence  of  insufficient  production. 

It  is  therefore  out  of  the  question  to  devise  artificial 
remedies,  however,  ingenious  they  may  be,  such  as  the 
creation  of  the  international  currency,  for  instance.  In 
such  cases  innovations  are  dangerous.  In  trying  to  cure 


228        THE  INTERNATIONAL  TRADE  CONFERENCE 

the  malady  of  one  we  must  be  careful  to  avoid  spreading 
contagion  to  others. 

The  danger  lies  in  making  general  that  rise  in  the  cost 
of  living  which  causes  endless  suffering  among  all 
peoples. 

What  we  must  do  to  improve  the  exchange  is : 

First,  to  improve  the  internal  economic  conditions  of 
the  country. 

Second,  to  procure  means  of  payment  through  appro- 
priate financial  measures.  That  is  one  of  the  chief  prob- 
lems that  confronts  the  new  French  Parliament  which 
will  be  elected  soon. 

By  means  of  new  taxes,,  by  issuing  loans  at  home  and 
abroad,  the  French  State  must  get  into  a  position  that 
will  enable  it  to  reduce  its  debts  to  the  Bank  of  France 
and  decrease  the  circulation  of  banknotes. 

The  present  circulation  is  over  7  billion  dollars,  un- 
questionably an  excessive  figure.  Before  the  war  the 
circulation  of  bank  notes  in  France  had  been  kept  for 
several  years  within  about  1  billion  dollars.  There  was, 
moreover,  in  circulation  600  million  dollars  in  gold  coin, 
which  has  since  been  withdrawn.  The  total  circulation 
that  met  commercial  needs  was  thus  about  1  billion  600 
million  dollars. 

We  admit  that  the  general  increase  in  prices  justifies 
an  increase  in  this  figure  and  that  a  circulation  of  from 
2y%  to  3  billion  dollars  is  not  too  great  under  present  con- 
ditions. As  the  French  Government  owes  the  Bank  of 
France  4  billion  dollars,  it  is  apparent  that  with  the  pay- 
ment of  this  debt,  circulation  will  be  reduced  automatic- 
ally to  the  acceptable  level. 

Nor  can  we  fail  to  mention  the  important  help  which 
the  Bank  of  France  rendered  its  country  during  the  war. 

Through  skilled  financial  arrangements  with  our  Allies, 
by  using  part  of  the  gold  reserve  which  had  been  in- 
creased for  that  purpose  and  by  patriotic  appeals  to  the 
French  public,  the  Bank  of  France  was  in  a  position  to 
negotiate  very  important  credits  for  the  French  Treasury 
abroad  and  so  to  protect  our  exchange  for  several  years. 


THE  INTERNATIONAL  TRADE  CONFERENCE        229 

During  the  difficult  hours  of  the  war,  this  vast  in- 
stitution placed  at  the  disposal  of  the  State  all  the  means 
of  payment  it  required  and  the  backing  of  its  long-stand- 
ing credit. 

Today,  changing  roles,  the  State  has  to  place  itself  in 
a  position  to  repay  the  Bank  of  France.  By  so  doing  it 
will  contribute  to  a  large  degree  to  the  improvement  of 
the  exchange  and  will  make  the  task  of  this  great  insti- 
tution easier  in  supporting  our  trade  and  our  industry. 
This  support  is  more  indispensable  than  ever  during  the 
period  of  reconstruction  upon  which  we  are  now  em- 
barking. 

A  factor  of  no  less  importance  is  the  increase  in  pro- 
duction of  all  kinds  in  France  and  its  colonies.  This  in- 
crease will  have  to  include  agricultural  products,  raw 
material,,  fuel,  ore,  and  manufactured  articles  that  are 
to  be  produced  in  such  large  quantities  as  to  make  it 
possible  for  France  to  meet  her  domestic  requirements  to 
a  large  extent  and  to  recover  the  place  on  the  foreign 
market  that  is  really  hers.  Shortage  of  production  causes 
the  sufferings  of  the  world. 

It  is  up  to  men  like  these  who  are  gathered  here  to  re- 
peat to  the  world  the  laws  of  modern  production.  They 
have  the  right  to  do  so  since  they  have  learned  them  from 
long  experience. 

Production  does  not  depend  upon  the  workingman 
alone.  A  weaver  in  India  produces  barely  several 
inches  of  coarse  cloth  as  a  result  of  an  entire  day's  work. 

Production  does  not  depend  upon  the  "ingenieur"  alone. 
Without  capital  he  cannot  realize  his  machines. 

Production  does  not  depend  upon  capital  alone.  Cap- 
ital without  the  workingman  and  the  ingenieur  would  be 
sterile. 

Production  depends  rather  upon  the  harmonious  com- 
bination of  workers,  technical  knowledge  and  capital.  It 
is  the  fruit  of  these  three  elements. 

In  order  to  have  work  well  paid,  its  output  must  be 
large.  Human  effort  must  be  directed  and  coordinated 
through  the  intelligence  and  technical  knowledge  of  the 


230        THE  INTERNATIONAL  TRADE  CONFERENCE 

head  of  the  enterprise.     Production  must  be  multiplied 
by  the  use  of  the  machine,  which  is  the  fruit  of  capital. 

Every  increase  in  wages  that  does  not  carry  with  it  a 
corresponding  increase  in  production  raises  the  cost  of 
living.  It  is  but  a  deceptive  phantom.  When  everyone 
will  be  brought  to  the  realization  of  this  point,  it  will 
mean  that  the  chief  part  of  economic  difficulties  has  been 
solved  or  at  least  lessened  and  that  an  important  step 
forward  has  been  taken  toward  social  progress. 

MEANS  OF  PAYMENT. 

To  obtain  an  improvement  in  the  exchange,  we  must 
devise  measures  to  increase  means  of  payment.  The  first 
idea  that  comes  to  our  mind  is  to  resort  to  commercial 
credits  abroad.  These  credits  have  been  used  at  different 
times  during  the  war  for  private  transactions  of  little 
importance  and  also  for  collective  operations  with  the 
backing  of  powerful  groups  of  financiers. 

Commercial  credits  will  undoubtedly  be  used  again  .n 
particular  instances  but  the  length  of  these  credits,  even 
if  they  are  renewed  several  times,  is  comparatively  short. 

Short  maturity  would  not  allow  the  French  importer 
to  count  legitimately  upon  the  return  of  the  exchange  to 
parity  before  the  repayment  of  his  credits. 

After  a  minute  consideration  of  this  question,  it  is  our 
opinion  that,  in  view  of  the  period  required  for  the  resto- 
ration of  France  10  years  would  be  the  minimum  dura- 
tion for  credits  that  are  to  be  extended. 

Now,  credits  of  this  nature  cannot  be  extended  by 
banks  as  they  would  impair  the  liquidity  of  their  assets. 
These  credits  must  accordingly  be  obtained  either  by 
borrowing  directly  from  the  government  or  by  issuing 
long-term  securities  to  be  taken  by  individuals  or  cor- 
porations. 

During  the  war,  credits  were  obtained  in  the  form 
of  loans  from  government  to  government.  It  is  not  up 
to  us  to  say  whether  it  would  not  be  wise  to  employ  sim- 
ilar methods  for  limited  quantities  in  specific  cases,  as, 
for  instance,  in  supplying  France  with  foodstuffs  and 


THE  INTERNATIONAL  TRADE  CONFERENCE        231 

raw  materials,  which  would  be  imported  under  the  con- 
trol of  the  French  Government  during  the  period  of  re- 
construction. 

To  issue  French  securities  on  the  American  market 
would  be  the  best  method,  beyond  all  doubt,  of  providing 
France  with  the  means  of  payment  she  requires.  These 
securities  could  be  issued  either  straight  to  the  public  or 
through  the  intermediary  of  American  corporations  that 
could  issue  their  own  bonds  against  foreign  securities 
which  they  would  keep  as  collateral. 

Moreover,  you  cannot  get  away  from  the  fact  that  for 
a  country  in  which  exports  exceed  imports  by  a  huge  dif- 
ference, it  is  absolutely  necessary  to  make  foreign  in- 
vestments. 

A  country  in  such  a  position  cannot  insist  upon  re- 
ceiving gold  indefinitely  from  its  foreign  customers. 
Such  an  influx  of  gold  would  become  useless  as  soon  as  its 
gold  reserve  would  exceed  the  needs  of  its  trade. 

On  the  other  hand,  insistence  upon  payments  in  gold 
would  result  in  impoverishing  the  importing  country 
financially,  in  impairing  its  credit  and  consequently  in 
depriving  it  for  the  future,  of  every  other  means  of  pay- 
ment. 

Investments  in  foreign  securities,  on  the  contrary, 
when  safely  made,  can  be  considered  a  supplementary 
gold  reserve,  but  one  which  bears  interest.  It  affords  the 
best  means  of  regulating  exchange,  as  the  "arbitrages"  of 
securities  between  foreign  markets  will  always  occur  at 
an  opportune  moment  to  limit  fluctuations  in  exchange. 

Both  England  and  France  had  made  foreign  invest- 
ments before  the  war,  which  proved  the  chief  element  of 
their  financial  strength.  We  are  at  liberty  to  say  today 
that  these  foreign  investments  alone  enabled  these  two 
countries  to  carry  the  war  against  Germany  to  a  success- 
ful close. 

Because  the  rapid  development  of  the  United  States  re- 
quired so  much  capital  before  the  war,  this  country 
employed  all  its  resources  at  home.  It  was  rather  a  bor- 
rower than  a  lender. 


232        THE  INTERNATIONAL  TRADE  CONFERENCE 

However,  the  situation  is  reversed  now.  During  the 
war  capital  kept  piling  up,  so  that  many  economists  and 
financiers  are  of  the  opinion  that  Americans  could  easily 
invest  abroad.  I  share  this  opinion  and  believe  that  this 
investment  could  be  effected  without  difficulty  as  soon  as 
the  American  public  can  be  brought  to  realize  the  ad- 
vantage of  it,  and  as  soon  as  American  banks  have  de- 
veloped the  necessary  organization  for  selling  large 
amounts  of  securities  to  the  public. 

Such  organizations,,  when  well-planned,  are  known  to 
yield  amazing  results.  In  this  way  one  of  our  large 
banking  institutions  in  France  sold  securities  amounting 
to  27  billion  francs,  that  is,  5V&  billion  dollars,  for  the 
French  Government  since  the  declaration  of  war. 

The  United  States  has  now  an  exceptional  opportunity 
to  start  similar  investments.  The  best  possible  securities 
are  offered  it  from  the  entire  world  upon  exceptional 
terms. 

As  far  as  French  securities  are  concerned  the  tempo- 
rary depreciation  in  exchange  adds  a  particular  specula- 
tive attraction  for  Americans  to  acquire  them. 

France  can  offer  the  United  States  securities  of  various 
kinds,  such  as  Government  bonds,  French  obligations,  in- 
dustrial securities  or  foreign  securities  from  Central  and 
Eastern  Europe. 

Government  bonds  and  bonds  of  railroad  companies  or 
other  large  corporations — Credit  Foncier  or  Credit  Na- 
tional pour  la  Reparation  des  Dommages  de  Guerre — are 
particularly  interesting  securities  for  Americans. 

The  improvement  in  the  financial  situation  during  the 
last  few  months,  the  wide  distribution  of  securities — they 
are  now  held  by  more  than  seven  million  people  in 
France — as  well  as  the  fact  that  French  "rentes"  enjoy  a 
very  broad  market,  should  make  them  worth  the  special 
attention  of  the  American  public. 

By  subscribing  to  these  loans  or  buying  these  securities 
at  the  present  rate  of  exchange,  American  capital 
actually  associates  itself  with  French  interests,  as  it  will 


THE  INTERNATIONAL  TRADE  CONFERENCE        233 

benefit  by  the  economic  betterment  of  France  which  will 
in  turn  bring  about  an  improvement  in  exchange. 

French  industrial  securities  should  be  equally  attract- 
ive to  the  American  investor,  as  they  will  increase  in 
value  in  proportion  to  the  economic  improvement  of 
France.  They  usually  yield  less  than  the  French 
"rentes."  The  lesser  yield  is  made  up  for  by  a  steady 
increase  in  capital  value  because  the  quotation  of  these 
securities  takes  into  account  the  amount  of  reserves  that 
is  put  aside  yearly  out  of  net  profits,  and  thus  increases 
steadily. 

Finally,  France  owns  a  large  amount  of  securities  of 
Eastern  Europe.  It  would  greatly  assist  the  develop- 
ment of  these  countries,,  which  offer  such  brilliant  pros- 
pects, if  our  French  business  men  could  be  associated 
there  with  Americans  and  give  them  the  full  advantage 
of  their  past  experience. 

France,  during  the  great  struggle  which  has  just  been 
brought  to  a  close,  has  not  alone  seen  the  flower  of  her 
youth  fall  in  battle.  For  the  freedom  of  the  world  she 
has  recklessly  sacrificed  a  vast  part  of  the  wealth  she  had 
accumulated  as  the  fruit  of  centuries  of  toil  and  stinting. 
She  still  retains  her  valiant  people,  her  fertile  soil  and 
her  soft  skies. 

She  will  rebuild  her  railways,  improve  and  restore  her 
equipment  and  manufacturing  plants. 

Victory  gives  her  renewed  force. 

The  future  opens  up  radiant  before  her  in  this  rejuve- 
nated world  wherein  she  is  determined  to  retain  her 
place. 

Nevertheless,  viewing  the  immensity  of  her  task, 
France  is  cheered  to  feel  coming  toward  her  from  all 
corners  of  the  earth  that  same  warm  sympathy  which 
pervades  this  assembly  of  those  who  were  her  brothers 
in  arms  of  yesterday,  her  companions  in  toil  today. 

She  is  confident  that  America,  who  comes  out  of  the 
struggles  more  powerful,  more  united  and  wealthier  than 
ever,  will  stand  by  her  side.  The  most  severely  stricken 
of  all,  she  must  of  necessity,  for  a  certain  period  of  time, 


234        THE  INTERNATIONAL  TRADE  CONFERENCE 

devote  all  her  energy  to  healing  her  wounds ;  but,,  during 
this  time,  she  trusts  that  America  will  supply  her  with 
the  raw  materials  and  the  equipment  she  requires  for  im- 
mediate recuperation. 

France  is  confident  that  America  will  follow  along  the 
path  we  have  just  indicated  and  will  actually  take  prac- 
tical measures  to  postpone  settlement  until  the  forces  of 
France  have  been  fully  restored. 

If  this  should  come  to  pass ;  if  America,  broadening  her 
scope  of  activity  and  extending  it  to  other  nations  should 
give  to  the  exhausted  world  the  support  it  awaits,  our 
task  would  be  much  simplified  in  attaining  in  each  coun- 
try the  cooperation  of  all  social  classes  which  tends  to- 
ward the  organization  of  production  and  in  attaining 
among  nations  the  cooperation  that  will  promote  an  ex- 
change of  ideas  and  services. 


AFTERNOON  SESSION. 
FRIDAY,  OCTOBER  24. 

Mr.  Rhett,  in  the  chair,  said: 

Ladies  and  Gentlemen:  The  program  this  afternoon 
will  begin  with  a  presentation  of  the  position  of  Great 
Britain  by  one  whose  name  is  almost  a  household  word  in 
the  financial  districts  of  this  country,  a  man  in  whose 
judgment  the  people  of  this  country  have  almost  as  much 
confidence  as  the  people  of  his  own,  the  president  of  the 
Bank  of  Liverpool,  Sir  James  Hope  Simpson,  whom  I  now 
present  to  you. 


Address  of  Sir  James  Hope  Simpson, 

President  of  the  Bank  of  Liverpool,  Liverpool,  England. 

Mr.  Chairman,  Ladies   and  Gentlemen:   I   would   like 
first  of  all  to  express  my  warm  thanks  to  you,  sir,  for  the 


THE  INTERNATIONAL  TRADE  CONFERENCE        235 

kindly  words  in  which  you  have  introduced  me  to  this 
audience;  and  I  would  like  to  express  to  all  of  you  my 
thanks  for  coming  to  listen  to  the  story  which  I  would 
like  to  tell  you  about  conditions  over  in  my  country.  I 
might  say  that  I  have  had  personally  the  great  advantage 
of  traveling,  for  a  little  bit,  through  some  of  your  indus- 
trial districts.  I  have  learned  a  great  deal;  I  have  seen 
much  of  your  industrial  life,  and  I  am  very  much  struck 
with  several  things.  I  am  very  much  struck  with  the 
great  optimism  and  courage  of  your  business  men.  Every 
one  has  a  belief  in  himself;  every  one  has  a  belief  in  his 
firm  or  his  corporation  and  in  his  own  city  and  state.  I 
assure  you  that  coming  from  a  country  where  we  are  a 
little  too  apt  to  depreciate  ourselves,  it  is  a  very  great 
incentive  to  me.  It  sends  me  back  to  fresh  courage  and 
fresh  determination  to  do  the  best  for  my  own  city,  my 
own  undertaking,  my  own  state. 

I  wish  to  explain  that,  although  I  represent  the  British 
banks  at  this  Conference,,  any  views  that  I  express  today 
or  any  statements  that  I  may  make  are  given  entirely  on 
my  own  responsibility  and  I  am  speaking  naturally  as  a 
banker.  There  is  a  curious  distinction,  apparently,  which 
I  have  heard  in  America  more  than  once  from  the  plat- 
form, between  business  men  and  bankers.  It  reminds  me 
of  the  curious  distinction  that  was  made  in  one  of  the 
New  York  papers,.  I  believe,  some  time  ago,  describing  a 
shipwreck.  It  was  announced  that  thirty-nine  souls  were 
lost  and  two  men  from  Hoboken.  Now,  I  do  not  know 
whether  I  belong  to  the  lost  souls  or  to  the  two  men  from 
Hoboken;  but  I  come  before  business  men  because  I  feel 
that  the  interests  of  the  banks  are  entirely  bound  up  with 
the  interests  of  the  business  men. 

Now,  I  would  like  to  express,  may  I  say,  on  behalf  of 
our  whole  delegation,  the  great  thanks  we  owe  to  America 
as  a  nation  for  their  magnificent  contribution  to  the 
Allied  cause.  We  had  many  thrills  during  this  war;  we 
had  our  times  of  exultation  and  our  times  of  disappoint- 
ment ;  but  I  think  I  never  personally  experienced  a  greater 
thrill  than  when  I  looked  out  from  my  office  window  at 


236        THE  INTERNATIONAL  TRADE  CONFERENCE 

Liverpool  and  saw  the  first  contingent  of  the  American 
army  marching  up  the  street.  It  was  a  sign  and  a  fore- 
taste of  the  great  and  stupendous  help  which  you  brought 
to  the  service  of  our  cause.  I  also  remember,  and  I  shall 
never  forget,  how  I  stood  one  day  this  summer  in  a  little 
cemetery  on  the  outskirts  of  my  city  and  there  were  row 
after  row  of  little  mounds,  and  at  the  head  of  each  mound 
a  little  cross,,  and  on  each  little  cross  the  name  of  a  man, 
and  below  it  the  name  of  his  regiment  and  the  state  from 
which  he  came.  As  I  read  the  names  of  Texas,  Tennessee, 
Louisiana,  and  Massachusetts  and  all  your  states  I  felt 
that  those  men,  although  they  had  died  in  England,  or  on 
the  way  to  England,  before  ever  reaching  the  battle- 
fields, had  given  their  lives  to  the  cause  which  was  dear 
to  us  and  dear  to  you.  When  I  think  that  those  graves 
were  only  a  mere  fraction  of  similar  graves  scattered  all 
over  the  French  front  I  began  to  realize  the  debt  that  we 
owe  to  the  people  of  this  country. 

We  owe  also  a  great  debt  to  you  for  your  financial  sup- 
port before  you  came  into  the  war.  That  support  was 
valuable  to  us,  but  it  was  naturally  hedged  around  by 
your  obligations  as  neutrals.  After  you  came  into  the 
war  your  resources  were  freely  placed  at  the  disposal  of 
the  Allied  cause  and  nothing  in  the  whole  war  contributed 
more  to  the  ultimate  successful  issue. 

There  is  one  other  great  contribution  which  you  made 
to  the  cause,  and  that  was  this :  You  brought  to  it  the 
assurance  and  conviction  to  the  whole  world  that  the 
cause  was  right.  Nothing  but  the  righteousness  of  our 
cause  could  have  induced  America  to  depart  from  her  life- 
long traditions  of  non-interference;  and,  inasmuch  as 
there  were  in  all  countries  of  Europe  wavering  minds 
who  had  doubted  all  through  whether  the  war  was 
righteous,  it  was  of  very,  very  great  value  to  us  all  to 
feel  that,  taking  an  independent  view,  and  taking  a  view 
with  extreme  reluctance,  but  with  strong  conviction, 
America  was  persuaded  that  our  cause  was  right. 

With  your  permission  and  on  behalf  of  the  British  dele- 
gation, I  should  like  to  thank  the  other  nations  which  are 


THE  INTERNATIONAL  TRADE  CONFERENCE        237 

represented  at  this  Conference.  We  shall  never  forget, 
and  neither  will  you,  the  enormous  sacrifices  of  Belgium, 
France  and  Italy  and  all  the  other  Allies  who  joined  with 
us.  We  shall  never  forget  those  countries  which,  though 
not  represented  here,  deserve  a  high  place  of  honor  at 
this  and  every  other  Allied  Conference.  Those  are  the 
countries,  too  stricken  by  war,  too  devastated  to  join  with 
us  just  now.  Serbia,  which,  I  suppose,,  has  really  suf- 
fered more  in  proportion  than  any  other  of  the  Allies; 
Montenegro,  little  Montenegro;  Poland,  Roumania — all 
our  Allies  everywhere — I  wish  to  pay  a  tribute  to  them 
and  I  am  sure  that  you  will  be  glad  that  I  have  done  so. 

It  is  not  for  me  on  this  occasion  to  say  anything  in 
praise  of  the  work  of  our  own  Army  and  Navy.  If  I  did 
I  should  spend  the  whole  afternoon;  but  it  is  the  silent 
work  of  that  navy,  the  bravery  of  that  great  army  and 
their  constant  enthusiasm  in  the  midst  of  defeat  are 
written  in  golden  letters  on  the  shining  pages  of  our 
island  story  and  it  is  not  for  me  to  add  anything  to  the 
glory  which  they  have  earned. 

So,  after  these  preliminary  remarks  I  would  like  to 
turn  to  the  subjects  with  which  I  am  perhaps  more 
familiar,  and  those  are  the  conditions  of  Great  Britain 
during  and  after  the  war.  I  would  like,  first  of  all,  being 
a  financial  man  to  speak  of  the  financial  upheaval  which 
took  place  at  the  opening  of  the  war.  At  that  time  Lon- 
don was  the  great  lender,  the  great  banker  for  all  the 
world.  When  the  war  broke  out  and  the  lenders,  the 
bankers  of  London,  began  to  doubt  as  to  whether  the 
money  which  they  had  advanced  to  the  rest  of  the  world 
would  be  repaid  they  began  suddenly  to  shut  off  the 
stream  of  credits.  There  was  no  other  big  lender  in  the 
world  ready  to  take  the  place  of  London.  New  York  was 
itself  indebted  to  us ;  Vienna  was  closed  by  the  war ;  Ber- 
lin was  closed ;  Paris  was  closed ;  Amsterdam  had  enough 
to  do ;  and  so  it  came  about  that  the  mere  cutting  off  of 
the  stream  of  credit  created  a  great  financial  crisis  in  the 
city  of  London.  It  was  feared  that  the  bills  which  were 
expected  to  be  met  would  not  be  provided  for  and  a  great 


238        THE  INTERNATIONAL  TRADE  CONFERENCE 

anxiety  began  to  fill  the  minds  of  all  the  men  in  the  money 
market.  It  was  at  that  time  and  to  meet  that  condition 
of  things  that  our  government  and  our  financial  men  got 
together  and  devised  those  great  measures  of  relief  of  the 
market  which  carried  it  through  that  extremely  grave 
crisis.  It  was  also  at  that  time  that  our  government  de- 
cided that  they  would  withdraw  from  circulation  the  great 
stock  of  gold  lying  in  the  purses  of  the  people  and  in  the 
strong  rooms  of  the  banks.  That  reserve  was  not  an 
official  reserve.  We  had  an  official  reserve,,  the  figure  of 
which  was  well  known  and  announced  at  our  center  in  the 
Bank  of  England.  But  we  had  a  very  valuable  reserve  in 
the  pockets  of  the  people  and  in  the  other  banks  which 
amounted  altogether,  it  is  estimated,  to  over  one  hundred 
and  twenty  millions  sterling.  That  gold  was  gradually 
withdrawn  from  circulation  and  formed,  during  the  early 
years  of  the  war,  a  valuable  instrument  in  the  hands  of 
our  government  in  the  Bank  of  England  for  the  settle- 
ment of  international  debts.  Of  course,  that  had  to  be 
replaced  and  it  was  replaced  by  the  issue  of  what  we  call 
treasury  notes,  which  are  one-pound  notes  and  ten-shilling 
notes.  These  are  now  in  common  use  throughout  the 
country  for  all  purposes  of  domestic  and  business  pay- 
ments. A  great  deal  of  criticism  has  been  leveled  at  our 
government  for  not  supporting  those  notes  by  a  large 
stock  of  gold.  Why  have  they  not  done  so  ?  Because  the 
gold  could  not  be  gotten.  We  have  a  small  stock  of 
gold  amounting  to  about  eight  or  nine  per  cent  of  the 
total  issue,  but  that  is  not  enough  on  ordinary  banking 
principles,  and  it  is  not  pretended  by  the  Government  that 
it  is  enough.  The  time  will  come,  I  hope,  and  it  is  the 
hope  of  all  the  bankers  of  England,  when  gold  will  be 
accumulated  sufficient  to  redeem  all  those  notes.  Because 
that  issue  of  notes  was  very  large,  being  about  three 
hundred  and  fifty  millions  sterling,  it  has  been  charged 
that  it  has  actually  caused  the  great  inflation  of  prices 
that  has  taken  place  in  our  country.  I  venture  to  dispute 
that.  In  the  first  place,,  we  had  to  replace  about  one  hun- 


THE  INTERNATIONAL  TRADE  CONFERENCE        239 

hundred  and  twenty  millions  of  gold.  In  the  second  place, 
every  worker  in  the  country  is  now  receiving  as  much  or 
more  in  the  form  of  wages  as  he  did  before  the  war  andl 
is,  accordingly,  carrying  more  loose  money  in  his  pocket. 
In  the  third  place,  and  this  is  no  inconsiderable  item, 
these  notes  found  their  way  far  out  into  the  world.  They 
are  now  circulating  in  Egypt,  in  the  Levant,  Turkey, 
on  the  borders  of  Russia;  and  when  the  Germans  were 
not  able  to  persuade  the  Russians  to  accept  their  mark 
notes  they  had  to  employ  the  Bank  of  England  notes, 
British  Government  Treasury  notes  and  United  States 
dollar  notes.  Therefore,  it  appears  to  me  that  if  you  take 
all  those  things  together  there  is  not  much  inflation  about 
that  currency  issue. 

The  next  great  financial  consideration  which  came  be- 
fore us  during  the  war  has  been  the  perpetual  recurrence 
of  the  issue  of  British  Government  loans.  In  England  we 
have  gone  through  exactly  the  same  sort  of  experience 
that  you  have  gone  through  in  America  with  the  floating 
of  your  Liberty  Loans;  and  we  have  gone  through  it,  I 
am  glad  to  say,  with  similar  success,,  and  now  there  are 
in  the  hands  of  millions  of  people  government  stock  and 
war  savings  certificates.  The  result  is  twofold.  In  the 
first  place,  a  great  part  of  our  national  debts,  by  far  the 
larger  portion,  is  owing  to  our  own  people,  and  not 
abroad.  In  the  second  place,  a  saving  spirit  has  been  in- 
culcated into  the  minds  of  many  people  who  never  thought 
of  saving  before. 

The  next  feature  of  the  war  which  immediately  hits  us 
all  was  the  rushing  of  men  to  the  colors.  To  give  you  an 
illustration  of  what  that  means,  I  had  a  thousand  men 
employed  in  my  bank ;  650  of  those  joined  the  colors  and 
our  experience  was  by  no  means  singular.  But  the  result 
was  that  industry  was  very  largely  crippled.  In  our  ex- 
tremity we  turned  to  quarters  to  which  an  anxious  man 
often  turns — to  the  women,  and  the  women  saved  the 
situation.  Gradually  we  accommodated  ourselves  to  that 
great  disturbance  and  displacement  of  labor. 

The  next  disturbing  thing  was  government  control  of 


240        THE  INTERNATIONAL  TRADE  CONFERENCE 

business ;  and  I  do  not  think  that  many  people  now  "God 
bless  the  Government  control."  I  think,  of  all  the  puz- 
zling things  in  the  war,,  government  control  was  the 
worst,  and  there  is  a  strong  movement  now  in  the  country 
to  get  rid  entirely  of  those  gentlemen  whose  services  were 
eminently  necessary — I  do  not  deny  that — eminently  nec- 
essary during  the  war,  but  whose  services  can  now  be 
quietly  and  readily  dispensed  with. 

Then  we  had  some  things  which  came  very  near  home. 
We  were  pretty  soon  threatened  with  a  shortage  of  fuel 
and  with  visits  from  German  airplanes  and  airships. 
Those  two  things  combined  required  that  we  should 
economize  our  light  and  that  we  should  screen  our  lights. 
The  result  was  that  in  practically  every  home  there  was 
only  one  room  used  for  all  purposes.  There  were  no  lights 
left  on  when  you  went  to  bed  and  you  always  kept  your 
blinds  down.  If  you  did  not,  the  police  were  on  your 
track.  When  you  went  abroad  the  streets  at  night  you 
could  not  see  your  way.  Again,  we  had  to  economize  in 
fuel ;  and,  of  all  the  economies,  I  think  that  perhaps  was 
the  most  difficult  and  hit  a  great  many  people  very  hard. 
We  had  to  economize  in  food.  For  two  or  three  years  the 
limit  of  meat  allowed  to  any  one  person  was  two  pounds 
per  week;  sugar,  half  a  pound,  butter,  two  ounces;  and 
that  sort  of  thing  still  to  a  certain  extent  prevails,  and  I 
told,  will  prevail  in  all  its  acuteness  in  the  coming  winter. 

But  the  great  overshadowing  interest  and  anxiety  of 
the  war  was  that  whenever  there  was  an  advance  or 
whenever  there  was  a  retreat,  or  whenever  our  men  would 
fight  and  hold  their  own,  sure  enough  in  a  few  days  tele- 
grams began  to  arrive  from  the  war  office  in  one  home 
after  another  that  boys  who  were  the  center  of  the  af- 
fection and  interest  of  the  home  had  been  killed  and,  in 
course  of  time,  all  that  was  left  in  place  of  them  was  per- 
haps the  photograph  taken  before  he  went  away  and  a 
photograph  of  the  little  grave  in  France.  It  seems  to  be 
a  very  painful  thing  when  one  man  after  another  whom 
you  met  had  lost  his  son,  one  lady  after  another  whom 
you  met  had  lost  a  son.  Some  people  lost  two  sons ;  others 


THE  INTERNATIONAL  TRADE  CONFERENCE        241 

whom  I  know  lost  three.  In  other  cases  whole  families  of 
sons  were  wiped  out,  and  when  you  take  into  account  the 
fact  that  we  sent  six  and  one-half  million  men  to  the 
colors  and  that  of  those  a  million  were  killed  or  died  of 
wounds,  you  will  see  that  there  are  not  a  great  many 
families  in  England  who  have  not  to  mourn  the  loss  of 
those  who  were  dear  to  them.  And  then  the  anxiety 
about  public  affairs  and  the  course  of  the  war  was  very 
great  and  many  a  time  I  have  repeated  to  myself  those 
fine  words  of  the  Roman  poet  who  said,  "Remember  in 
the  midst  of  difficulties  to  preserve  a  steadfast  mind," 
and  that  was  what  we  had  to  do.  We  had  to  work  under 
that  burden  for  four  and  one-half  long  years.  Of  course, 
our  men  were  constantly  being  wounded,  and  you  cannot 
go  now  into  any  city  or  town  or  village  of  our  country 
without  meeting  mutilated  men  who,,  but  for  the  war, 
would  have  been  the  strength  and  backbone  of  our  coun- 
try in  the  time  to  come.  And  so  you  will  well  understand 
the  great  relief  and  rejoicing  with  which  we  welcomed 
the  armistice.  And  yet  I  venture  to  say  this:  That  if 
England  had  known  the  experience  through  which  she 
was  going  to  pass,  if  she  had  known  it  in  advance,  it 
would  have  made  no  difference  whatever  in  her  decision 
to  go  to  the  relief  of  France. 

And  now  the  curtain  has  been  rung  down  on  the  proud 
struggle  of  war.  How  do  we  stand  in  Great  Britain?  I 
should  like  to  refer  first  to  our  national  debt.  Our  pre- 
war debt  was  about  three  and  one-half  billion  dollars. 
It  is  now  thirty-eight  billion  dollars.  Of  this  we  owed  at 
the  beginning  of  the  war  nothing  abroad.  We  now  owe 
seven  billion  dollars.  But  against  that  seven  billion  we 
have  to  set  this  fact:  There  is  owing  to  us  by  our  own 
colonies  and  by  foreign  countries  about  nine  billion  dol- 
lars. Now,  I  want  particularly  to  note  that  I  am  not 
authorized  to  say  anything  on  behalf  of  our  government, 
but,  speaking  as  a  citizen,  a  private  citizen  of  the  British 
Empire,  I  do  not  hesitate  to  say  this :  That  while  we  shall 
require  time  to  pay  our  debt,  it  will  be  paid.  The  nation 
is  determined  to  set  our  finances  in  order  and  to  foot  the 


242        THE  INTERNATIONAL  TRADE  CONFERENCE 

bills.  The  nation  must  follow  the  road  of  sacrifice  and 
hardship,  but  it  is  the  road  of  honor  and  safety.  That  is 
all  I  wish  to  say  about  government  functions. 

With  regard  to  the  general  commercial  conditions  in 
Great  Britain  I  should  like  to  try  to  present  in  a  few  sen- 
tences a  sort  of  balance  sheet  of  our  losses  and  our  gains. 
The  first  loss  I  would  name  is  that  we  have  lost  five  years 
of  the  economic  development  of  the  country ;  for  five  years 
the  ordinary  replacement  of  worn-out  materials,  machin- 
ery and  so  on  has  had  to  go  by  the  board.  The  replace- 
ment of  merchant  ships  has  had  to  stand  over.  The 
savings  of  the  people,  which  would  in  ordinary  course 
be  devoted  to  the  development  of  commercial  enterprise, 
have  had  to  be  devoted  to  warlike  enterprise.  But  against 
that  great  loss  we  have  to  set  one  great  and  possibly  a 
countergain.  That  is  a  great  increase  in  the  class  of 
machinery  which  was  required  for  the  manufacture  of 
munitions  of  war.  That  is  very  largely  confined  to  an  in- 
crease of  machinery  in  our  engineering  works.  To  some 
extent  it  meant  also  an  increase  in  the  machinery  in  our 
textile  factories,  and  I  think,,  on  the  whole,  it  may  be 
taken  that  the  increase  due  to  war  requirements  is  a  good 
set-off  to  the  absence  of  the  usual  economic  saving  and 
development.  Then  we  lost  some  of  our  foreign  invest- 
ments and  our  loss  was  your  gain.  We  found  that  we 
owed  a  lot  of  money  in  the  United  States  and  we  wanted 
to  pay  it.  Therefore,  all  the  holders  of  dollar  securities, 
the  bonds  of  your  railways,  the  bonds  of  your  public 
utility  corporations  and  other  various  securities  were 
called  in  by  our  government  and  were  either  borrowed  by 
them  or  purchased  by  them  and  sent  over  to  this  country 
in  order  to  help  raise  the  money  and  to  pay  off  a  good  deal 
of  our  indebtedness  here.  Therefore,  there  is  now  lying 
in  the  vaults  of  your  banks  and  there  is  held  by  individ- 
uals and  companies  throughout  this  country  the  dollar  se- 
curity, which  formerly  formed  part  of  the  investments  of 
our  people  at  home.  It  is  estimated  that  at  the  beginning 
of  the  war  we  held  about  twenty  billion  dollars'  worth 
of  foreign  investment,  but  owing  to  the  cause  to  which 


THE  INTERNATIONAL  TRADE  CONFERENCE        243 

I  have  referred  we  now  hold  only  fifteen  millions,  and 
inasmuch  as  we  used  the  interest  on  those  investments  for 
the  purpose  of  paying  for  imports  abroad  to  the  extent 
of  the  loss  of  interest,  we  are  crippled  for  the  future. 
Then  we  had  a  vast  rise  in  prices,  including  the  prices 
of  raw  materials,  machinery,  food  and  clothing.  That 
rise  of  prices  affected  every  family  in  the  land.  It  led 
to  an  enormous  disturbance  in  the  wage  market  in  all 
salaries.  It  led  to  great  inconveniences  on  the  part  of 
wives  who  had  to  look  after  their  families,  and  the  family 
provisioning.  It  has  led  to  one  problem  after  another  at 
home  which  still  have  to  be  solved ;  and,  of  course,,  it  led 
to  the  very  vital  consideration  that  everything  that  we 
buy  abroad  in  the  form  of  raw  materials  for  the  purpose 
of  reproduction  and  for  exports  has  raised  the  cost 
against  us ;  but  now  that  we  are  actually  manufacturing 
and  getting  again  into  the  export  markets  we  shall  gain 
a  corresponding  rise  in  the  price  we  shall  obtain  for  our 
exported  goods. 

We  had  an  enormous  loss  of  shipping.  We  lost  a  very 
large  quantity  of  shipping,  not  only  by  natural  causes, 
but  by  German  submarine  attacks ;  and  when  you  realize 
that  shipping  is  the  life  of  our  island  country  you  will 
realize  that  we  cannot  sit  down  under  that  loss.  Against 
that  loss  I  have  to  put  this  That  already  our  shipbuilding 
yards  are  full  of  new  merchant  steamers  in  process  of 
construction  and  we  hope  in  course  of  time  to  overtake 
the  terrible  losses  which  we  have  suffered  during  the  war. 

Now,  this  has  a  distinct  bearing  upon  the  question  of 
the  American  mercantile  marine ;  and  I  would  like  to  say 
at  once  that  we  welcome  the  entry  of  America  on  a  large 
scale,  a  much  larger  scale  than  heretofore  in  the  marine 
carrying  trade  of  the  world ;  that  we  hope  her  great  gains 
in  that  direction  will  be  maintained,  for  we  regard 
America  as  one  of  the  most  honorable  competitors  we  can 
have.  You  can  well  understand  that  if  a  choice  were  put 
to  us  between  German  competition  and  American  compe- 
tition there  could  be  but  one  answer  to  that  question.  I 
think  I  represent  the  views  on  this  occasion  of  all  the 


244        THE  INTERNATIONAL  TRADE  CONFERENCE 

British  delegation  when  I  say  that  there  is  room  for  both 
of  us  on  the  high  seas,  and  there  is  plenty  of  stuff  to 
carry.  The  more  ships  each  of  us  have  to  carry  it  the 
better  for  the  world. 

I  would  like  to  refer  for  a  moment  to  labor  unrest.  We 
find  ourselves,  owing  to  the  war,  in  a  very  difficult  posi- 
tion in  regard  to  labor.  I  will  not  cover  the  ground  which 
was  so  well  covered  yesterday  by  Sir  Arthur  Shirley  Benn, 
but  I  would  like  to  confirm  from  my  own  experience  and 
inquiries  that  what  he  said  when  he  said  that  there  seems 
to  be,  in  spite  of  all  the  strikes  which  you  read,  there 
seems  to  be  growing  up  a  distinctly  better  feeling  between 
masters  and  men.  There  seems  to  be  a  recognition  on  the 
part  of  labor  that  restriction  of  output  is  a  national 
calamity  and  a  recognition  on  the  part  of  the  employer 
that  the  workmen  must  have  a  greater  share  than  here- 
tofore in  the  profits  of  his  work  and  in  the  social  of  life. 
When  you  get  that  attitude  on  the  part  of  both  employer 
and  the  employe  I  do  not  think  it  will  be  beyond  human 
skill  and  wisdom  to  find  a  means  of  solution  to  the  dif- 
ficulties which  still  confront  our  country.  Of  course,  we 
have  had  an  awful  loss  of  labor  through  the  death  of  so 
many  young  men,,  but,  as  I  said  before,  we  have  discov- 
ered a  great  reservoir  of  strength  in  the  form  of  female 
labor,  and  when  you  take  that  consideration  and  add  to 
it  the  fact  that  we  are  well  equipped  now  with  machinery 
of  all  kinds,  especially  that  we  are  employing  more  auto- 
matic machinery  than  we  did  before,  I  do  not  think  we 
need  to  be  anxious  in  England  about  the  future  of  the 
labor  problem. 

Finally  we  are  faced  with  very  heavy  taxation.  I  think 
that  every  one  in  England  will  be  poorer  than  he  has  been. 
At  any  rate,  during  the  rest  of  my  business  life  I  cannot 
see  any  chance  of  relief  for  the  taxpayer.  But  I  feel  that 
if  we  are  to  carry  out,  as  I  knew  we  will,  what  I  have 
called  the  setting  in  order  of  our  national  finances,  every 
one  of  these  taxpayers  will  have  to  bear  a  greater  burden 
than  he  has  ever  contemplated,  and  a  greater  burden  than 
he  can  with  comfort  bear.  However,  it  will  have  to  be 


THE  INTERNATIONAL  TRADE  CONFERENCE        245 

borne  and  it  will  be  borne,  I  hope,  with  cheerfulness  and 
with  resignation. 

Summing  up  the  whole  thing — I  try  to  make  that  bal- 
ance sheet  in  an  informal  way — summing  up  all  I  think 
it  comes  to  this:  That  we  are  justified  in  the  strong  con- 
viction that  we  shall  recover  our  war  damages,  that  we 
shall  recover  fairly  rapidly ;  but  it  will  entirely  depend,  as 
Mr.  Alexander,  the  chairman  of  your  Finance  Committee, 
said  upon  working  and  upon  saving  upon  the  part  of  the 
individuals  of  our  country ;  and  I  feel  with  confidence  that 
a  country  which  has  already  passed  through  many  a 
severe  crisis  will  not  succomb  to  the  present  crisis  and 
that  we  may  look  forward  with  confidence  to  our  economic 
future. 

We  came  here  partly  to  tell  you  our  needs,  and  I  am 
glad  to  say  that  our  needs  can  be  summed  up  in  a  very 
short  sentence.  We  need  the  continued  supply  of  your 
raw  materials  and  all  we  ask  that  you  shall  continue  to 
show  the  confidence  in  individual  business  men  that  you 
have  hitherto  shown.  If  you  found  that  you  could  trust 
them  in  the  past,  we  ask  you  to  trust  them  in  the  future. 
I  will  give  you  an  illustration  of  the  meaning  of  that.  A 
cotton  merchant  omporting  into  Liverpool  cotton  from 
the  United  States  has  to  take  into  consideration  what  that 
cotton  will  cost  him.  He  naturally  does  that  before  he 
orders  the  raw  cotton  from  you ;  and  I  ask  you  to  believe 
that  when  he  places  the  order  with  you,  however  adverse 
the  exchange,  however  high  the  price  of  the  cotton,  that 
you  may  assume  that  he  has  made  his  arrangements  for 
paying  for  that  cotton,  that  he  would  not  have  ordered 
it  unless  he  had  seen  his  way  to  meet  the  bill.  Therefore, 
I  say  we  ask  that  you  shall  continue  to  supply  your  raw 
material  to  our  individual  merchants  and  importers  in  a 
normal  and  usual  way.  But  we  are  not  asking  on  behalf 
of  the  commercial  community  of  Great  Britain  for  any 
other  special  form  of  credit. 

Now  I  pass  from  the  question  of  England  or  Great 
Britain  by  itself  just  to  say  one  or  two  words,  if  you  will 
allow  me  the  time,  about  a  few  other  countries  of  Eu- 


246        THE  INTERNATIONAL  TRADE  CONFERENCE 

rope.  I  shall  not  refer  to  France,  or  Belgium  or  Italy 
who  are  represented  here.  But,  I  should  like  to  say  one 
word  about  our  relations,  our  economic  relations  with 
Germany.  Before  the  war  Germany  was  our  greatest 
customer.  We  exported  to  Germany  and  imported  from 
her,,  roughly  speaking,  about  one  hundred  and  sixty  bil- 
lions sterling  of  goods  on  each  side  of  the  account.  On 
every  export  we  made  and  every  import  we  made  we  ex- 
pected to  make  a  profit.  On  every  import  they  made  and 
every  export  they  made  they  expected  to  make  a  profit, 
and  no  doubt  the  business  would  not  have  been  done  if  ?t 
had  not  been  profitable  on  both  sides.  Now  that  great 
market  has  been  cut  off  from  us  and  our  great  market 
has  been  cut  off  from  them  and  the  question  is  how  soon 
will  those  markets  be  reopened  to  one  another?  I  ven- 
ture to  say  that  the  atrocities  committed  by  the  Germans 
wherever  they  went,  especially  their  atrocities  upon  help- 
less populations,  upon  women,  upon  girls,  upon  prison- 
ers— the  memory  of  this  has  sunk  too  deep  into  the  Brit- 
ish mind  for  us  readily  to  resume  commercial  intercourse 
with  them.  No  legal  impediment  will  be  placed  in  the 
way.  It  is  possible  that  transactions  may  be  begun 
sooner  than  I  expect,  but  such  is  the  temper  of  our  people 
at  present  that  I  am  afraid  the  initiative  will  not  come 
from  them.  I  think  it  will  require  a  good  many  years 
before  we  can  get  to  such  a  stage  as  to  practice  the  pre- 
cepts of  our  Master,  Christ,  and  forgive  them  com- 
pletely. I,  therefore,  look  for  no  rapid  revival  of  the  Ger- 
man trade.  Again,,  we  have  had  a  good  deal  of  trade  with 
countries  not  represented  here  but  which  have  been  faith- 
ful Allies  of  our  cause,  such  as  Poland,  Finland,  Czecho- 
slovakia, Roumania,  Jugo-Slavia  Republic,  Serbia,  and 
Montenegro.  We  agreed  to  do  business  with  those  people 
because  we  feel  that  they  deserve  it;  and  we  cannot  do 
business  with  them  unless  we  trust  them  and  give  them 
long  credits.  A  certain  amount  of  business  is  passing 
already  between  us  and  them,  but  it  is  business  involving 
short  credits  which  had  happened  to  be  easily  arrange- 
able.  But  they  will  require  for  the  restitution  of  their 


THE  INTERNATIONAL  TRADE  CONFERENCE        247 

countries  credits  for  much  longer  periods  than  we  in 
England  with  our  own  present  financial  obligations  can 
undertake  to  supply.  We  used  to  be  free  lenders  to  the 
whole  world  even  for  long  terms;  but  when  we  owe  the 
world  so  much  ourselves  it  is  not  for  us  to  continue  that 
policy.  We  can  only  resume  that  when  we  have  met  our 
own  international  obligations.  Therefore,  with  the 
greatest  deference  and  without  any  desire  to  interfere  in 
American  concerns,  I  would  like  to  suggest  that  the  pro- 
visioning of  those  countries,  needing  as  they  do,  all  pos- 
sible supplies  and  materials ;  needing  as  they  do  raw  ma- 
terials; food,  clothing,,  tools  and  machinery  before  they 
can  resume  their  normal  life  is  at  once  a  challenge  and 
an  opportunity  for  America.  Credit  is  required  on  a 
large  scale  and  if  it  were  forthcoming  at  once  it  would 
be  of  untold  benefit  to  those  war-stricken  people.  There 
is  a  beautiful  illustration  in  one  of  the  old  prophets  where 
one  reads  of  a  river  that  issued  from  the  sanctuary  and 
spread  over  the  plain  and  brought  life  wherever  it  went 
and  of  which  the  prophet  says  that  everything  shall  live 
whithersoever  the  river  cometh.  And  so  I  venture  to  say 
it  is  that  stream  of  credit  in  the  case  of  those  people.  If 
they  were  to  receive  credit,  credit  in  the  form  they  need, 
materials  of  the  kind  they  require,  materials  to  help  them 
start  on  the  work  of  reproduction  themselves,  I  say  that 
that  stream  of  credit  would  bring  life  and  hope  to  those 
nationalities  at  present  downtrodden  and  dejected  and 
hopeless.  Surely  it  is  worth  the  consideration  of  this 
Conference  and  I  believe  it  is  receiving  at  the  hands  of 
your  Finance  Committee  the  earliest  possible  consider- 
ation. It  is  worthy  of  consideration  to  try  to  ascertain 
whether  it  is  possible  to  respond  to  that  challenge  and  to 
embrace  that  opportunity. 

In  closing  I  should  like  to  say  that  my  colleagues  and 
I  have  been  greatly  cheered  by  this  Conference.  The  in- 
tercourse of  business  men  of  various  nationalities  and 
especially  in  the  intercourse  of  men  of  the  hopeful  spirit 
of  the  American  business  men  is  a  great  encouragement 
and  delight  to  us  and  we  shall  go  back  to  our  countries 


248        THE  INTERNATIONAL  TRADE  CONFERENCE 

enthused  and  inspired.  I  am  glad  to  say  that  we  can  look 
forward  to  a  renewal  of  our  intercourse  because  I  under- 
stand that  this  Conference  is  intended  to  be  a  recurring 
event ;  and  we  hope  that  either  in  Europe  or  here  at  some 
future  time  or  times  we  men  who  are  here  today  may 
have  the  pleasure  of  meeting  all  of  you.  One  further  ad- 
vantage of  that  recurring  intercourse  will  be  that  it  will 
tend  to  equip  us  and  inspire  us  all  with  the  high  mission 
to  which  the  business  men  of  this  after-war  generation 
are  called.  What  is  that  mission  ?  It  is  nothing  less  than 
this :  It  is  nothing  less  than  by  the  tranquil  operation  of 
commerce  to  bring  peace  to  the  nations  of  the  world,  to 
introduce  into  every  home,  great  or  humble,  the  means  of 
living  and  the  objects  of  delight  and  pleasure.  It  is  noth- 
ing less  than  to  provide  for  every  man  honorable  work  so 
that  there  shall  no  longer  be  any  man  standing  around 
idle  because  no  man  has  hired  him.  It  is  nothing  less 
than  this:  That  we  are  called  today  to  bring  a  salve  or 
ointment  for  the  grievous  wound  of  the  world;  to  help 
to  restore  the  world  to  a  life  of  happiness  and  prosperity. 

The  Chairman:  I  am  sure  that  I  voice  the  sentiments 
of  all  of  this  great  gathering  when  I  express  its  thanks 
and  appreciation  to  Sir  James  for  the  splendid  address 
he  has  given  us.  It  has  been  a  great  source  of  gratifica- 
tion to  us  that  Great  Britain  needs  nothing  from  us ;  that 
she  is  prepared  to  go  on  and  do  business  with  us  in  the 
same  old  way  and  upon  the  same  old  terms.  We  knew, 
my  friends,  that  she  went  into  this  war  in  the  very  be- 
ginning with  her  whole  heart  and  soul ;  that  at  the  open- 
ing of  the  war  she  exposed  her  whole  territory  and  threw 
her  own  "contemptible  little  army"  into  the  breach  and 
saved  the  channel  ports  and  the  communication  between 
the  armies.  We  knew  that  while  no  portion  of  the  bat- 
tlefield on  land  was  in  her  territory,  yet  on  the  sea  she 
lost  more  than  all  the  other  nations  combined  and  we  did 
not  know  just  to  what  extent  her  resources  had  been 
taxed. 

It  has  not  only  been  a  source  of  gratification  that  she 


THE  INTERNATIONAL  TRADE  CONFERENCE        249 

is  prepared  to  go  on  and  do  business  with  us,  but  her  dele- 
gation has  been  of  infinite  assistance  to  us  in  bringing 
closer  home  to  us  the  picture  of  Europe  as  it  is  today ;  the 
condition  of  those  nations  who  are  not  here  represented 
and  what  we  would  probably  have  to  do  to  rehabilitate 
them.  And  so  we  want  to  extend  not  only  our  thanks  to 
Sir  James,  but  to  every  member  of  that  delegation  for 
their  help  to  us  in  this  Conference. 

i 
REPLY  FROM  PRESIDENT  WILSON. 

And  now  gentlemen  I  want  to  rejoice  with  you  and 
read  to  you  a  communication  which  has  just  been  handed 
us  from  the  White  House,  a  communication  from  Mr. 
Tumulty  in  reply  to  a  letter  from  Mr.  Bedford  from  the 
Conference : 

"My  Dear  Mr.  Bedford:  Let  me  make  cordial  acknowl- 
edgment of  your  letter  of  October  22nd  and  in  the  Presi- 
dent's behalf  thank  you  and  through  you  the  delegates  to 
the  International  Trade  Conference  for  the  generous  mes- 
sage of  sympathy  and  good  will  which  it  transmits  in 
their  name. 

"You  may  be  sure  that  the  President  would  be  cheered 
and  heartened  by  this  friendly  greeting. 

"Sincerely  yours, 

(Signed)  "J.  P.  TUMULTY, 

"Secretary  to  the  President." 


Address  of  Commander  Domenico  Gidoni. 

Representative  of  the  Italian  Minister  of  the  Treasurer. 

The  Chairman:  We  are  going  to  hear  from  the  repre- 
sentatives of  the  Commission  from  Italy.  I  do  not  know 
whether  Italy  won  our  admiration  more  in  the  hours  of 
her  trial,  in  the  fortitude,  the  manner  in  which  she  with- 
stood it,  or  at  the  time  of  her  triumph  when  she  drove  her 
armies  into  the  enemy's  territory  at  the  end.  Certainly 
she  has  our  deepest  sympathy  and  our  deepest  regard. 


250        THE  INTERNATIONAL  TRADE  CONFERENCE 

Her  cause  is  to  be  presented  to  you  this  afternoon  by  a 
man  who  is  eminently  qualified  for  that  purpose.  He  was 
a  financial  representative  of  the  Italian  Government  in 
England  during  the  war.  He  is  at  present  the  repre- 
sentative, the  financial  representative  of  the  Italian  Gov- 
ernment in  this  country,  Commander  Domenico  Gidoni, 
and  I  beg  to  present  him  to  you. 

Commander  Gidoni  said: 

Ladies  and  Gentlemen:  It  is  a  great  honor  and  at  the 
same  time  a  pleasure  for  me  to  speak  today  before  this 
assembly,  representative  of  the  intellect  and  strngth  of 
the  new  era  of  Peace. 

In  taking  the  initiative  in  calling  this  conference  the 
United  States  Chamber  of  Commerce  has  laid  the  foun- 
dation stone  on  which  the  edifice  of  the  renewed  economic 
life  of  Europe  will  arise. 

I  am  confident  that  our  debates  will  lead  to  effective  re- 
sults, for  experience  has  taught  me  that  you  Americans, 
with  that  spontaneity  and  rapidity  of  action  which  char- 
acterizes you,  know  how  to  prove  your  friendship  by 
deeds  as  well  as  by  words. 

In  June,  1917,.  the  rate  of  exchange  for  the  Italian  lire 
was  almost  as  low  as  it  is  today.  Well,  it  was  essentially, 
thanks  to  the  material  and  moral  assistance  afforded  us  by 
the  Federal  Reserve  Board,  and  to  the  cordial  cooperation 
of  the  American  banking  institutions,  that  we  were  able 
to  improve  its  position  and  stabilize  exchange. 

As  the  delegate  to  your  country  of  the  Bank  of  Italy 
and  of  the  National  Institute  of  Exchange,  I  take  this  op- 
portunity to  express  our  gratitude  for  what  was  done  on 
that  occasion  on  behalf  of  my  country. 

The  state  of  exchange  is  one  of  the  gravest  problems 
of  peace.  It  pictures  graphically  a  nation's  financial  con- 
dition, of  which  it  is  the  most  visible  sign.  A  depreciated 
exchange  is  directly  injurious  to  a  country  in  its  commer- 
cial relations  with  other  countries  whose  exchange  is  at  a 
premium.  When  the  rate  of  exchange  passes  the  "gold 
point"  and  there  is  no  possibility  of  meeting  external 


THE  INTERNATIONAL  TRADE  CONFERENCE        251 

debts  in  gold,  so  as  to  bring  exchange  to  the  normal,  a 
further  depreciation  can  not  in  any  effective  way  be 
halted. 

There  is  one  initial  cause  for  this  depreciation  below 
the  "gold  point,"  that  is  the  inability  on  the  part  of  the 
country  which  has  depreciated  currency  to  pay  its  for- 
eign debts  either  in  gold  or  commodities  of  trade. 

The  degree  of  depreciation  depends  upon  material  and 
psychological  factors. 

The  material  factors  are  the  amount  of  paper  currency 
and  gold  reserves,  the  country's  debt,  its  balance  of  trade. 

The  psychological  factors  are  the  valuation  of  economic 
resources,,  political  and  social  conditions,  latent  national 
forces,  and  the  forecast  of  future  prospects. 

This  is  why  countries  which  are  all  equally  unable  to 
settle  their  foreign  liabilities  in  gold  or  goods,  and  so  are 
all  technically  on  the  same  monetary  plane,  still  suffer  in 
various  degrees  from  the  depreciation  of  their  currencies. 

The  pound  sterling,  for  instance,  has  depreciated  much 
less  than  the  franc  because  both  material  and  psycho- 
logical factors  are  favorable  to  England,  where  a  rapid 
return  to  the  normal  is  more  certain.  Compared  with  the 
pound  sterling  and  with  the  frank,,  Italian  exchange  has 
fallen  to  a  lower  level  because  of  certain  less  favorable 
factors. 

As  soon  as  the  restrictions  in  force  during  the  war 
were  removed,  in  March,  1919,  the  exchanges  of  the  bel- 
ligerent countries  of  Europe  quickly  and  violently  receded 
in  comparison  with  the  dollar. 


252        THE  INTERNATIONAL  TRADE  CONFERENCE 

New  York  Market — Average  Monthly  Range  of  Rates. 


1918. 

November 
December 


Pound  Sterling 
Normal  Rate 

Exchange 
$4.8665 ='£1. 

4.757 

...  4.757 


January    4.758 

February    4.758 

March 4.758 

April   4.672 

May  4.659 

June    .....  4.611 

July 4.255 

September 4.195 


Franc 

$1.00=5.1813. 
5.430 
5.454 

5.458 
5.465 
5.465 
5.745 
6.385 
6.385 
7.706 
8.635 


Lire 

$1.00=5.1813. 
6.360 
6.363 

6.368 
6.366 
6.366 
7.056 
8.095 
8.295 
9.137 
9.830 


The  French  student  of  finance  now  faced  with  the  ques- 
tion whether  the  depreciation  of  the  franc  is  not  in  part 
due  to  the  repatriation  of  English  and  American  soldiers, 
who,  during  the  war,  received  and  spent  in  France  very 
large  sums  in  cash. 

The  sudden  fall  in  exchange  is,,  comparatively  speaking, 
much  more  serious  in  the  case  of  Italy,  and  she  must  con- 
sequently bend  all  her  energies  to  solve  it  as  soon  as  pos- 
sible. 

Before  the  war  the  economical  and  financial  condition 
of  Italy  was  good  and  tended  to  constant  improvement. 
The  3!/2  Per  cent  Government  bonds  were  quoted  above 
par.  Fifty-seven  per  cent  of  the  paper  currency  was 
covered  by  the  gold  and  silver  reserve,  and  the  lire  was 
at  a  premium. 

But  serious  as  present  conditions  may  be,  the  produc- 
tive energies  of  Italy  have  not  been  destroyed  by  the 
war  is  responsible  for  a  great  development  in  Italian 
industries,  which  are  now  being  rapidly  placed  on  a  peace 
basis,  and  are  being  built  upon  strong  foundations. 

The  principal  factors  that  materially  affect  fluctuations 
in  exchange  are,  as  we  have  seen,  the  paper  currency, 
foreign  debts,  and  the  unfavorable  balance  of  trade. 

The  paper  currency  of  Italy,  of  the  Government  and  of 
the  banks,  is  now  14,000,000  lire  ($2,800,000,000)  made 


THE  INTERNATIONAL  TRADE  CONFERENCE        253 

up  as  follows:  10,000,000,000  lire  ($2,000,000,000)  for 
account  of  the  Government ;  and  4,000,000,000  lire  ($800,- 
000,000)  for  legitimate  banking  transactions. 

A  compulsory  loan,  which  has  already  been  decided 
upon  by  the  Givernment,  will  considerably  reduce  this 
figure  within  a  short  time. 

The  export  and  import  trade  of  Italy  shows  today  a 
very  unfavorable  balance  for  our  country : 

In  1915 2,170,000,000  lire  ($434,000,000) 

In  1916 5,300,000,000  lire  ($1,060,000,000) 

In  1917 5,400,000,000  lire  ($1,080,000,000) 

In  1918 8,000,000,000  lire  ($1,600,000,000) 

The  measures  now  adopted  to  limited  imports  of  raw 
materials  and  of  articles  strictly  necessary  to  the  physical 
and  industrial  life  of  the  country  will  have  their  due 
effect. 

Before  the  war — 1910-1914 — the  foreign  trade  balance 
was  against  Italy  and  varied  between  1,000,000,000  lire 
($200,000,000)  and  1,300,000,000  lire  ($260,000,000). 
But  this  was  more  than  met  by  the  remittances  of  immi- 
grants, and  by  the  money  spent  by  foreigners  in  Italy, 
which,  of  course,  ceased  during  the  war.  So  we  explain 
the  fact  that,  in  spite  of  the  heavy  imports  of  coal,  grain 
and  other  raw  materials,  Italian  exchange  was  then  above 
par. 

We  cannot  say  today  to  what  extent  Italy's  monetary 
balance  will  continue  unfavorable,  because  it  depends 
partly  upon  the  development  of  our  foreign  trade,  partly 
upon  the  payment  of  war  indemnities  owed  by  Germany 
and  Austria,  partly  upon  the  plan  to  be  adopted  for  the 
amortization  of  Italy's  debts  to  the  United  States  and 
England  and  partly  on  the  granting  of  long-term  credits. 
Nevertheless,  although  we  cannot  prophesy  with  cer- 
tainty, there  are  certain  facts  from  which  we  can  obtain 
a  compresensive  and  approximate  idea  of  the  coming 
situation. 

Italy's  total  debt  on  July  1,  1919,  amounted  to  75,000,- 
000,000  lire  ($15,000,000,000),  consisting  of: 

Internal  debt  46,000,000,000  lire  ($9,200,000,000). 

External  debt  19,000,000,000  lire  ($3,800,000,000). 


254        THE  INTERNATIONAL  TRADE  CONFERENCE 

Government  paper  currency  10,000,000,000  lire  ($2,- 
000,000,000) . 

The  home  debt  will  be  partially  reduced,  as  we  have 
seen,  through  an  internal  loan  at  a  very  low  rate  of  in- 
terest, and  in  this  way  not  only  will  the  paper  currency 
be  diminished,  but  at  the  same  time  the  liability  of  the 
Government  for  interest  on  the  public  debt  will  be  re- 
duced. 

It  is  worth  while  to  point  out  that,  during  the  war  the 
Italian  Government  has  constantly  met,  by  new  taxation, 
the  payment  of  interest  on  its  war  loan.  It  will  make 
every  effort  not  to  abandon  this  wise  plan  in  its  future 
policy. 

The  national  expenditure  for  the  fiscal  year  1919-1920 
is  estimated  at  9,000,,000,000  lire,  and  old  and  new  tax- 
ation will  fully  cover  this  amount.  In  this  way  the  in- 
ternal financial  situation  will  be  placed  on  a  sound  basis, 
corresponding  to  the  economic  potentiality  of  the  country. 

The  debt  of  Italy  to  foreign  countries  is  approximately 
as  follows : 

England  10,000,000,000  lire   ($2,000,000,000). 

United  States  8,000,000,000  lire  ($1,600,000,000). 

Other  nations  1,000,000,000  lire  ($200,000,000). 

As  to  the  settlement  of  these  debts,  it  should  be  remem- 
bered that  while  France  and  Italy  are  both  debtors  to 
England  and  France,  England  stands  as  a  debtor  to  the 
United  States  and  as  a  creditor  to  France  and  Italy. 
England  is  therefore  in  a  very  much  better  position. 

The  terms  on  which  foreign  war  debts  are  to  be  repaid, 
both  as  to  principal  and  interest,  must  therefore  be  com- 
mensurate with  the  resources  of  each  country.  It  is 
necessary  for  Italy  to  have  long-term  credits,  besides 
this,  for  the  payment  of  imports  of  merchandise. 

However,  much  Italy  may  decide  to  limit  her  imports 
to  the  minimum  required  by  her  physical,  industrial  and 
social  needs,  it  will  still  not  be  possible  for  her  to  pay 
for  them  in  full  until  she  is  again  producing  grain  and 
other  staples  at  the  former  normal,  and  until  her  export 
trade  has  resumed  and  increased  its  former  volume.  It 


THE  INTERNATIONAL  TRADE  CONFERENCE        255 

should  be  remembered  that  it  is  not  because  the  importer 
is  unable  to  pay  that  long-term  credits  are  required  for 
the  payment  of  imports.  He  has  the  cash  in  hand — in- 
deed, an  excess  of  it.  But  the  difficulty  consists  in  con- 
verting at  present  the  lire  into  dollars  and  pounds  ster- 
ling without  an  extremely  heavy  and  unnecessary  loss, 
and  it  is  this  conversion  that  it  is  essential  to  put  off  until 
a  more  propitious  time. 

For  a  relatively  effective  and  substantial  relief  of  the 
present  exchange  problem,  Italy  can,  as  I  have  said,  rely 
on  Italians  abroad,  who  now  number  about  6,000,000, 
and  who  annually  remit  to  Italy  about  10,000,000  lire 
($2,000,000). 

Even  if  we  take  into  account  the  fact  that  Italian  emi- 
gration to  the  United  States,  owing  to  the  war  and  other 
restrictions,,  will,  perhaps,  not  find  as  large  an  outlet  as  in 
the  past,  it  is  still  true  that  the  need  of  labor  is  felt  in 
America  and  that  it  will  make  itself  felt  everywhere.  It 
is,  therefore,  not  over-rash  to  foresee  that  the  Italian 
laborer  will  eventually  find  abundant  and  useful  employ- 
ment in  other  countries. 

Furthermore,  we  may  expect  that  the  money  spent  in 
Italy  by  foreigners  will  reach  for  greater  proportions 
than  before  the  war  as  soon  as  normal  conditions  are  re- 
stored. A  careful  estimate  shows  that  before  1914  for- 
eign tourists  spent  in  Italy  over  $100,000,000  annually. 

We  thus  see,  that  as  far  as  foreign  nations  are  con- 
cerned, the  two  principal  measures  upon  which  the  set- 
tlement of  Italy's  exchange  problem  depends  are  the 
following : 

The  payment  of  interest  and  principal  on  the  foreign 
war  debts  to  be  made  at  a  convenient  time,  following  the 
official  declaration  of  peace. 

The  granting  of  long-term  bank  credits  on  reasonable 
terms  for  the  payment  of  imports.  So  as  to  guarantee 
the  payment  of  said  long-term  bank  credits,  a  syndicate 
has  recently  been  formed  in  Italy,  of  which  the  leading 
Italian  banks  are  members,  representing  capital  and  re- 


256        THE  INTERNATIONAL  TRADE  CONFERENCE 

serve  amounting  to  $300,000,000,  and  holding  deposits 
for  another  $2,200,000,000. 

If  provision  be  not  made  to  facilitate  the  payment  of 
imports  from  the  United  States,  a  tendency  already  man- 
ifested here  and  there  in  Europe,  will  be  accentuated,  for, 
in  spite  of  a  natural  reluctance  to  resume  business  with 
Germany  and  Austria,  the  merchant  will  be  forced  to 
make  his  purchases  in  these  countries  where  his  own 
money  is  at  a  premium,  and  where  the  price  is  conse- 
quently lower  than  elsewhere. 

Besides  the  factors  above  mentioned  there  is  another 
that  has  its  influence  upon  exchange :  Speculation. 

Beyond  the  gold  point,  the  price  of  exchange,,  as  I  have 
said,  is  affected,  not  only  by  material  factors,  but  also  by 
psychological  factors.  The  tendency  of  exchange  deter- 
mined by  the  combination  of  these  ruling  factors,  may  be 
accentuated  by  speculation,  which  does  not  create,  but 
merely  exaggerates  the  phenomenon.  There  is  no  doubt 
that  more  or  less  legitimate  speculation  has  had  free  play 
since  freedom  of  exchange  was  re-established.  Other- 
wise it  would  be  impossible  to  explain  the  violent  fluctu- 
ations that  European  exchange  undergoes  these  days  in 
relation  to  the  dollar.  These  are  graphically  illustrated 
in  an  accompanying  chart. 

If  the  money  of  a  country  forms  a  basis  for  estimating 
its  economic  activities,  reckoning  the  national  wealth  of 
Italy  at  200,000,000,000  lire  ($40,000,000,000  at  par 
value)  it  would  appear  that  its  entire  value  in  terms  of 
American  money  was  on: 

September  12,  1919,  $22,372,000,,000. 

September  16,  1919,  $19,800,000,000. 

September  18,  1919,  $20,350,000,000. 

Is  this  showing  of  the  exchange  rate  rational  ?  Has  it 
a  basis  of  fact? 

Is  it  possible  that  in  the  short  period  of  six  days  such 
great  changes  should  have  actually  occurred  in  Italy  as  to 
justify  fluctuations  so  violent  and  contradictory?  How 
great  an  effect  speculation  has  on  such  fluctuations  it  is 
not  easy  to  say,  but  certainly  it  has  had  an  influence. 


THE  INTERNATIONAL  TRADE  CONFERENCE        257 

Rebelling  against  the  restrictions  of  the  war,  banks 
and  bankers  immediately  after  the  armistice,  demanded 
the  restoration  of  a  free  exchange  market,  declaring  that 
the  decline  of  exchange  and  the  high  cost  of  the  dollar 
would  restrict  imports  and  therefore  automatically  re- 
store the  equilibrium  of  the  money  market. 

But  if  this  war  was  correct  in  theory  what  have  been 
the  results  in  practice  ? 

It  is  true  that  in  the  long  run,,  say  in  a  period  of  two 
or  more  years,  the  desired  equilibrium  will  be  restored. 
But,  in  the  meanwhile,  is  it  right  that  the  exchange 
market,  involved  in  inevitable  difficulties,  should  be 
thrown  into  yet  further  confusion  by  the  reckless  greed 
of  speculators? 

The  depreciation  of  its  currency  is  a  serious  handicap 
to  the  economic  life  of  a  country,  but  the  frequent  and 
violent  fluctuations  of  exchange  are  an  even  greater  evil. 

The  importer  must  be  in  a  position  to  rely  on  an  ex- 
change market  of  a  certain  stability,  otherwise  he  will 
have  every  incentive  to  turn  commerce  and  industry  into 
a  mere  speculation. 

It  is,  therefore,  doubtful  whether  it  was  a  wise  pro- 
ceeding to  remove  at  once  all  restrictions  on  exchange 
dealings.  If  steps  are  taken  to  restrain  the  vicious  prac- 
tices of  hoarding  profiteers  in  order  to  prevent  the  rise 
in  the  price  of  foodstuffs  and  other  commodities,  why 
leave  in  the  hands  of  speculators,  almost  untrolled,  the 
rate  of  exchange  which  is  the  supreme  regulator  of 
prices  ? 

The  war  has  ceased  on  the  battlefield,  but  it  continues 
in  the  field  of  economics  and  finance.  Here  the  storm 
still  rages  with  no  promise  of  abatement.  It  is  an  error 
to  assume  that  finance  and  exchange  may  be  regulated 
by  the  methods  and  standards  of  peace,  only  because 
there  are  no  more  soldiers  killing  each  other  on  the 
frontiers. 

A  return  to  the  monopolies  and  restrictions  adopted  to 
regulate  exchange  during  the  war  is  perhaps  impossible 


258        THE  INTERNATIONAL  TRADE  CONFERENCE 

today.  But  I  believe  that  Interallied  understandings 
could  be  arrived  at  which  would  moderate  speculation. 

It  is,  of  course,  impossible  to  guess  how  long  the  econ- 
omic disorders  produced  by  the  war  will  last,  and  when 
the  exchange  situation  will  be  restored  to  the  normal. 
There  is  no  precedent  in  history  for  this  war.  Before  it 
the  slaughters  of  Caesar  and  Napoleon  pale  in  memory. 

Still,  there  is  one  positive  reason  of  hope  for  the  future ; 
the  undreamed  of  energy  and  economic  resources  which 
the  people  of  the  world  revealed  in  the  face  of  the  crisis. 

Bismarck,  in  1870,  thought  that  he  had  reduced  France 
to  financial  impotency  for  at  least  twenty  years  by  impos- 
ing on  her  a  war  indemnity  of  $5,000,000,000  francs  ($1,- 
000,000,000).  But  France  paid  her  entire  debt  in  about 
three  years  and  within  two  decades  loaned  Russia  far 
greater  sums. 

Spain,  on  the  brink  of  bankruptcy  after  the  Spanish- 
American  war,  in  1898,  completely  re-established  her 
financial  position  in  a  little  over  ten  years. 

These  precedents  are  not  recalled  to  deduce  from  them 
a  prophecy  of  an  easy  and  quick  return  to  normal  con- 
ditions. The  economic  crisis  and,  tests  that  must  be  met 
as  an  effect  of  the  war  are  full  of  difficulties,  but  we  have 
a  growing  assurance  that  Italy,  just  as  she  won  the  vic- 
tory of  war  will  also  win  the  victory  of  peace. 

Gentlemen,  the  bare  facts  of  figures  eloquently  describe 
the  situation  and  the  task  to  be  accomplished.  But  the 
Italian  people,,  which  is  already  setting  to  work  with  re- 
newed energy,  is  determined  to  restore  the  economic 
status  of  the  country  and  insure  its  future  economic 
prosperity. 

The  Chairman:  We  have  heard  today  from  the  repre- 
sentative of  the  Secretary  of  the  Treasury,  that  is,  from 
the  Government.  We  have  heard  from  the  representative 
of  each  of  the  foreign  commissions.  We  will  now  hear 
from  the  representative  of  the  bankers  of  this  country. 
The  speaker  is  one  who  is  well  known  to  most  of  you. 
At  one  time  he  was  the  President  of  the  American  Bank- 


THE  INTERNATIONAL  TRADE  CONFERENCE        259 

ers'  Association.  He  is  now  the  President  of  one  of  our 
very  prominent  banks.  I  beg  to  present  to  you  Mr.  F.  0. 
Watts,  President  of  the  First  National  Bank  of  St.  Louis. 


Address  of  F.  O.  Watts, 

President  of  the  First  National  Bank  in  St.  Louis. 

The  evil  effects  of  the  World  War  are  so  evident  that 
many  are  prone  to  neglect  the  good  results  which  promise 
to  come  from  it.  This  visit  of  our  friends  with  whom 
we  had  the  honor  to  be  associated  in  the  titanic  struggle 
for  the  maintenance  of  human  freedom  and  representa- 
tive government,  serves  to  remind  us  that  the  foundation 
structure  of  liberty  and  fraternity  has  been  greatly 
strengthened  during  the  trying  experiences  of  the  past 
five  years.  It  also  augurs  much  for  the  future  coopera- 
tion of  all  enlightened  people  in  advancing  the  world's 
civilization. 

Cooperation  is  becoming  the  keynote  of  the  20th  cen- 
tury, but  in  emphasizing  this  social  device,  we  are  but- 
tressing the  one  method  by  which  man  has  advanced 
from  his  savage  to  his  civilized  state.  The  mutual  ex- 
change of  ideas,  the  frank  and  friendly  criticism  of  op- 
posing thoughts,  and  the  adoption  of  the  resulting  com- 
promise, has  been  the  method  of  human  advancement 
from  the  tribal  council  of  the  primitive  state  to  the  parlia- 
ments of  civilized  man. 

We  were,  therefore,  glad  to  extend  to  our  friends  a 
cordial  welcome,  for  we  knew  that  they  would  frankly 
discuss  with  us  their  problems  as  they  understood  them, 
and  they  do  not  need  any  further  evidence  of  our  good 
will  and  kindly  sentiment  toward  them.  They  come  from 
the  land  of  our  forefathers,  and  we  are  bound  to  them 
by  the  ties  of  human  relationships,  of  inheritance,  of 
trading  and  of  finance.  They  have  afforded  us  the  model 


260        THE  INTERNATIONAL  TRADE  CONFERENCE 

for  many  of  our  social,  political  and  business  organiza- 
tions. When  the  crisis  came  to  their  people,  we  were  glad 
to  remit  to  them  in  the  nature  of  a  deferred  payment  the 
debt  of  obligation  which  we  owe.  And  we  are  happy  to 
extend  to  them  whatever  additional  aid  that  may  be  nec- 
essary to  restore  their  normal  social  and  industrial  life. 

The  ties  binding  us  together  are  the  product  of  the 
centuries  of  association,  and  though  the  subject  under 
discussion,  namely,  the  extension  of  credit,  is  one  of  busi- 
ness character,  and,  therefore,  one  which  they  wish  to  be 
treated  as  such,  nevertheless  the  sentiments  existing  be- 
tween the  people  of  the  United  States  and  those  repre- 
sented by  our  welcome  guests,  do  affect  the  business 
practice  called  credit.  The  people  of  these  war-devastated 
countries  do  not  ask  for  alms,  for,  as  Baron  de  Neuflize 
states:  "France  does  not  want  charity  and  does  not  ask 
for  it.  It  is  a  business  proposition.  It  is  as  such  that  we 
ask  the  American  people  to  look  into  it."  They  have  not 
only  this  fund  of  self-respect  and  self-reliance,  but  also  a 
large  equity  in  tangible  property  as  a  basis  of  credit.  The 
people  of  England,  France,  Belgium  and  Italy  still  live. 
The  sun  still  shines  on  their  fertile  fields.  Their  mines 
still  contain  the  coal  and  other  metals  as  before  the  war. 
Their  peoples  are  patriotic,  disciplined,  and  believers  in 
law  and  order.  Despite  the  demoralization  of  the  war, 
they  realize  that  human  society  has  never  functioned, 
and  never  can  function  without  law  and  order,  the  foun- 
dation of  all  civilization  and  human  progress.  The  peo- 
ples of  these  countries  have  been  industrious  and  thrifty 
for  centuries  of  experience  in  organizing  and  operating 
industrial  and  financial  institutions,  and  have  built  up 
all  the  complicated  business  machinery  for  domestic  in- 
dustry and  foreign  trade.  And  this  patrimony,  this  heri- 
tage of  the  ages,  and  product  of  their  own  industry,  they 
are  prepared  to  make  still  other  sacrifices  to  maintain 
in  order  that  it  may  be  handed  on  in  undiminishing  glory 
to  their  children  and  their  children's  children. 

The  American  investor  will,  therefore,  not  only  con- 
sider the  tangible  assets  of  the  government's  guarantees 


THE  INTERNATIONAL  TRADE  CONFERENCE        261 

which  they  may  be  able  to  offer  as  bases  of  loans,  but 
they  will  also  consider  those  intangible  resources  which 
reside  in  the  character  of  the  people. 

Baron  de  Neuflize  has  written  that  "There  is  no  doubt 
there  are  at  least  one  million  Americans  who  would  gladly 
take  one  French  bond  of  $100  or  more,"  and  "I  am  per- 
fectly confident,"  he  continues,  "that  those  who  want  to 
help  us  out  of  sympathy  today  will  find  out  promptly  with 
true  American  insight  that  it  is  at  the  same  time  good 
business." 

Whatever  may  be  the  sum  which  could  be  supplied  on 
the  above  basis,  there  is  no  doubt  that  there  are  not  a  few 
investors  in  our  country  who  are  prepared  to  loan  their 
funds  on  a  basis,  partly  of  actual  security,  partly  of  good 
will  and  partly  on  a  basis  of  their  confidence  in  the  ulti- 
mate prosperity  of  the  people  of  France,  Belgium,  Italy 
and  other  European  nations. 

The  resources  of  Europe  are  very  great  and  being 
wisely  handled  will  pull  Europe  out  of  its  difficulties.  But 
we  must  not  reckon  these  difficulties  lightly.  Against  the 
assets  there  are  heavy  liabilities.  Finance  and  currency 
are  in  grave  disorder  in  most  of  the  countries  of  Europe. 
The  volume  of  production  is  low,  imports  have  been  enor- 
mous and  exports  have  been  small.  The  burden  of  debt, 
both  internal  and  external,  is  very  great  and  the  volume 
of  taxation  is  far  from  adequate  to  meet  the  existing  con- 
ditions. 

The  European  currency  situation  is  distressing.  It  is, 
of  course,  closely  linked  with  the  public  finances  of  the 
Government.  The  gold  redemption  in  all  belligerent  coun- 
tries of  continental  Europe  was  suspended  when  the  war 
began,  and  they  went  at  once  on  an  irredeemable  paper 
money  basis.  The  value  of  irredeemable  money  is  at  best 
an  uncertain  thing.  Sound  currency  divorced  from  imme- 
diate redemption,  directly  or  indirectly,  in  precious  metals, 
is  an  impossible  thing.  The  value  of  such  currency  goes 
up  and  down  with  the  credit  of  the  government,  and  the 
prospect  of  redemption  in  gold.  If  the  volume  of  such 
paper  money  is  very  great  the  prospect  of  gold  redemp- 


262        THE  INTERNATIONAL  TRADE  CONFERENCE 

tion  becomes  remote,  and  the  value  of  the  paper  is  at  the 
mercy  of  speculation,  rumor,  political  occurrences  and 
social  agitation. 

The  evils  of  unsound  currency  are  very  great.  We  in 
America  believe  in  the  gold  standard.  We  fought  for  it 
in  1886.  We  well  remember  the  vigor  of  that  campaign. 
In  1913,  however,  the  Democrats  and  Republicans  alike 
combined  in  writing  the  gold  standard  into  the  Federal 
Reserve  Act.  We  felt  that  the  world's  monetary  prob- 
lems had  been  settled  and  that  monetary  heresies  of  the 
greenback  or  free  silver  type  would  plague  us  no  more. 
The  next  decade,  however,  promises  to  bring  the  greatest 
crop  of  monetary  heresies  with  which  we  have  yet  con- 
tended. Already  they  are  appearing.  The  bankers  must 
be  alert  in  meeting  them.  The  gold  standard  throughout 
the  world  must  be  restored  at  the  earliest  possible  date. 

When  debts  and  credits  run  in  terms  of  gold  coin,  of 
fixed  weight  and  fineness,  men  know  where  they  stand. 
When,  however,  debt  runs  in  terms  of  irredeemable  paper 
money,  uncertainty  and  risks  are  introduced  into  every 
business  transaction.  Some  of  the  demoralization  of  in- 
dustry in  Europe  today  is  due  to  unsound  money. 

I  turn  now  to  the  abnormal  movements  of  exports  and 
imports,  a  movement  which  is  rapidly  increasing  Europe's 
external  debt  and  multiplying  her  difficulties.  This  one- 
sided flow  of  goods  has  been  the  occasion  of  great  jubila- 
tion on  the  part  of  certain  short-sighted  enthusiasts  in 
America.  It  has  drained  our  markets  of  goods;  it  has 
forced  our  cost  of  living  very  high;  it  has  made  oppor- 
tunity for  great  speculative  profits  by  dealers  in  commodi- 
ties; it  has  led  to  speculation  in  farm  lands  on  the  part 
of  those  who  do  not  see  that  the  prices  of  farm  products 
are  abnormal  and  who  expect  them  to  continue  forever. 

It  is  wholly  unhealthy.  It  is  abnormal  and  it  will  not 
last.  If  Europe  is  to  remain  solvent,  her  exports  must 
increase  and  her  imports  must  dimmish.  If  Europe  is 
ever  to  pay  her  debt  to  us,  she  must  send  us  more,  and 
we  must  send  her  less  goods. 

From  the  entrance  of  the  United  States  into  the  war 


THE  INTERNATIONAL  TRADE  CONFERENCE        263 

down  to  about  June  of  1919,  this  export  balance  was 
financed  chiefly  by  loans  made  by  the  United  States 
Government  to  the  governments  of  Europe. 

I  need  not  explain  to  this  audience  that  what  is  sold 
must  be  paid  for  and  that  international  trade  payments 
can  be  made  only  by  gold,  by  goods,  or  by  credit.  We 
have  already  got  from  Europe  all  the  gold  we  have  any 
use  for,  and  all  that  she  can  spare.  We  have  already 
extended  to  Europe  credits  which  stagger  the  imagina- 
tion. Any  approach  to  normal  conditions  means  that 
Europe  must  send  us  goods,  and  must  send  us  more  goods 
than  she  draws  from  us.  For  a  time  we  shall  need  to 
give  her  further  credits  to  enable  us  to  revive  her  pro- 
ductive power  so  that  she  may  send  us  goods,  not  because 
we  need  markets  for  goods,  but  because  she  needs  those 
goods  for  her  rehabilitation. 

When  Government  credits  cease  to  be  used  on  a  con- 
siderable scale  in  financing  exports  to  Europe,  the  burden 
of  Europe's  short  time  indebtedness  to  the  United  States 
became  too  great  for  the  exchanges  to  bear.  In  America, 
franc  bills,  lire  bills,  sterling  bills  and  the  like  piled  up 
in  enormous  volume  in  the  exchange  markets  in  New 
York,  while  Americans  needing  such  bills  were  few.  The 
supply  was  so  great,  and  the  demand  was  so  small  that 
the  exchange  markets  underwent  a  collapse.  The  depre- 
ciation of  most  European  exchanges  has  been  unthinkably 
great  on  the  basis  of  anything  in  the  history  of  those  cur- 
rencies before  the  armistice.  It  is  not  certain,  even  yet, 
that  many  of  the  exchanges  have  gone  low  enough  to 
measure  the  extent  of  internal  depreciation  of  European 
money.  In  explaining  the  exchange  situation  we  must 
not  look  at  imports  and  exports  alone.  Even  though  ex- 
ports and  imports  were  balanced,  the  exchanges  would 
still  be  depreciated  because  the  currencies  of  Europe  have 
depreciated  internally. 

Our  problem  here,  then,  is  not,  as  many  think,  to  bring 
exchanges  to  par.  Efforts  to  do  this  would  merely  inten- 
sify Europe's  troubles.  Our  problem  is  rather  to  give 
Europe  aid  in  such  form  as  will  assist  in  making  her  ex- 


264        THE  INTERNATIONAL  TRADE  CONFERENCE 

port  trade  revive.  It  is  essential  for  Europe  to  receive 
certain  exports  from  the  United  States.  It  is  almost 
equally  essential  that  Europe  should  cease  to  receive  ex- 
ports from  the  United  States  which  she  does  not  impera- 
tively need  and  for  which  she  cannot  afford  to  pay. 

What  is  the  extent  and  what  is  the  nature  of  Europe's 
needs?  Europe  has  had  far  too  much  in  the  way  of  goods 
from  us  since  the  armistice.  We  have  sent  her  a  rela- 
tively small  percentage  of  raw  materials.  The  great  bulk 
of  our  exports  have  been  finished  manufactures  and  foods, 
articles  for  immediate  consumption  rather  than  those 
which  could  be  used  in  further  production.  Luxuries 
should  not  go  and  many  of  the  goods  which  we  consider 
the  comforts  of  life  are  of  doubtful  advantage.  Food  in 
adequate  quantities  Europe  must  have.  Raw  materials 
Europe  must  have.  Our  French  friends  tell  us  that  they 
do  not  expect  or  need  machinery.  They  plan  to  produce 
rails  for  export.  They  plan  to  produce  locomotives.  As 
far  as  possible  Europe  should  produce  her  own  manu- 
factured goods  and  should  produce  manufactured  goods 
for  export.  No  doubt  considerable  machinery  is  needed 
by  certain  of  the  countries  to  the  east  of  Germany,  where 
the  destruction  has  been  great  and  where  establishments 
for  producing  machinery  are  less  adequate  and  in  less 
satisfactory  condition. 

The  effect  of  our  abnormal  export  trade  upon  American 
business  has  been  bad.  It  has  forced  up  commodity  prices. 
It  has  led  to  intensive  activity  on  the  part  of  those  indus- 
tries supplying  goods  for  immediate  consumption  and  it 
has  led  to  depression  in  other  industries  which  supply 
long-time  goods.  The  building  trade  has  been  heavily 
depressed,  and  we  are  now  short  of  housing  facilities. 
Rising  cost  and  the  difficulty  of  procuring  labor  have  ham- 
pered our  railroads  and  public  utilities.  Household  re- 
serves of  linen,  china,  clothing,  furniture  and  the  like  are 
far  below  what  they  were  in  this  country  before  1914. 

We  have  suffered  from  shortages  and  our  physical 
wealth  has  been  depleted.  The  abnormal  demand  has 
brought  tension  in  our  labor  market  which  has  led  to 


THE  INTERNATIONAL  TRADE  CONFERENCE        265 

overtime  work,  rapid  turnover  of  labor,  growing  inef- 
ficiency and  rising  labor  costs ;  while  the  labor  unrest  has 
been  complicated  by  the  rising  cost  of  living.  A  reduc- 
tion in  our  so-called  "favorable"  balance  of  trade,  with 
the  throwing  back  on  our  markets  of  $300,000,000  or  more 
per  month  of  goods  which  were  destined  for  export,  re- 
lieving the  tension  in  our  markets,  reducing  our  cost  of 
living  and  freeing  labor  for  the  building  trade  and  for 
other  necessary  purposes  in  the  United  States,  will  be  a 
blessing  rather  than  a  disaster. 

We  need  our  capital  at  home.  We  need  commodities  at 
home.  We  hope  and  expect  to  give  Europe  what  she  must 
have  for  her  rehabilitation,  but  we  must  not  do  so  with 
the  thought  that  in  maintaining  our  abnormal  export 
trade  we  are  doing  ourselves  a  service.  Rather  we  are 
making  a  sacrifice.  We  must  consider  carefully  how 
much  we  can  afford  to  spare  and  how  much  Europe  really 
requires. 

Reducing  the  problem  however  much  we  may,  there  is 
a  minimum  which  Europe  must  have  which  will  run  into 
large  figures.  How  are  we  going  to  solve  this  problem? 
It  has  both  its  European  and  American  side.  On  the  part 
of  Europe  it  involves  work,  thrift,  taxation  and  currency 
reform,  with  an  effort  to  return  to  the  gold  standard. 
Work  is  basic.  The  imposition  of  taxes  to  revive  the 
credit  of  the  states,  and  to  impose  thrift  on  the  people, 
is  essential.  Extravagance  has  run  wild  throughout  the 
world  since  the  armistice.  Work,  thrift  and  taxation  are 
unpleasant  words  to  hear,  but  the  heart  of  the  matter  lies 
in  them.  No  financial  legerdemain,  no  manipulation  of 
printing  presses  can  take  the  place  of  these  three  funda- 
mentals. 

On  the  side  of  the  United  States  we  have  intricate 
problems.  During  the  war  we  supplied  goods  to  Europe, 
and  our  Government,  backed  up  by  the  enormous  re- 
sources of  the  United  States,  and  the  unshakable  sup- 
port of  the  people,  got  money  through  taxes  and  Liberty 
Bonds  and  loaned  that  money  at  low  rates  to  our  Euro- 
pean Allies.  It  is  the  expectation  that  in  the  future  the 


266        THE  INTERNATIONAL  TRADE  CONFERENCE 

Government  will  play  a  role  in  these  matters,  and  the 
work  of  providing  Europe  with  money  is  to  be  done  by 
private  agencies.  Certain  legislation  is  needed.  We  here, 
who  have  examined  the  situation,  are  of  the  opinion  that 
it  is  time  to  become  active  on  the  basis  of  such  plans  as 
provided  by  the  Edge  Bill,  and  we  believe  that  this  legis- 
lation should  be  speeded  up.  We  are  ready  to  act. 

If  the  main  work  is  to  be  one  for  private  agencies,  what 
are  the  private  agencies  concerned?  We  find  our  ex- 
porters looking  to  the  banks,  and  they  are  desirous  that 
the  banks  should  provide  credits  to  finance  the  exports  in 
such  a  manner  as  to  relieve  the  exporters  of  all  liability, 
a  proceeding  which  would  require  the  bankers  to  tie  up 
their  funds  in  long-time  advances.  Our  European  friends 
have  made  clear  to  us  that  it  is  impossible  to  separate  the 
long-time  and  short-time  requirements  at  the  present  time 
and  any  funds  advanced  them  today  for  rehabilitation 
purposes  must  be  long  time. 

Under  ordinary  conditions  bankers  might  very  well 
make  advances  for  the  shipment  of  cotton,  since  the  cot- 
ton would  speedily  be  manufactured  and  sold,  which  would 
provide  funds  with  which  the  bankers  could  be  repaid. 
Even  in  this  case  bankers  would  not  make  such  advances 
directly  to  Europeans,  but  would  expect  to  make  loans 
through  their  customers  and  expect  to  receive  their  cus- 
tomers' contingent  liabilities.  But  our  friends  from 
Europe  insist  that  at  the  present  time  even  advances  for 
the  purchasing  of  raw  material  cannot  be  repaid  in  dollars 
at  an  early  date.  Whether  the  funds  are  advanced  for 
raw  materials  or  for  reconstruction  of  railroads,  they 
must  be  on  long  time.  Such  advances  bankers  cannot 
properly  make.  Bankers  deal  in  other  people's  money. 
They  hold  deposits  subject  to  check.  They  must  keep 
their  assets  liquid,  so  that  they  may  meet  demand  obli- 
gations. Our  friends  from  Great  Britain  and  France 
have  both  insisted  on  this.  The  British  bankers  have 
stated  that  they  do  not  make  advances  in  connection  with 
financing  of  foreign  trade  except  through  their  own  cus- 
tomers, that  they  maintain  their  customers'  contingent 


THE  INTERNATIONAL  TRADE  CONFERENCE        267 

liabilities  throughout.  Our  friends  among  the  French 
bankers  emphatically  state  that  it  is  not  the  function  of 
bankers  to  give  long-time  advances  or  long-time  guaran- 
tees. The  main  burden,  therefore,  cannot  fall  upon  the 
banks.  If,  then,  the  bank  cannot  relieve  the  exporter  of 
the  financial  problem,  can  the  exporter,  or  producer  and 
exporter  combined,  make  the  advance  on  long-time  credit 
to  European  customers?  The  answer  is,  for  most  of 
them,  that  the  limit  would  soon  be  reached.  If  they  tie 
up  their  capital  in  such  advances,  they  would  soon  have 
no  working  capital  left.  Some  of  it  they  can  do,  but  not 
enough  to  help  greatly.  The  banks  can  make  advances 
for  a  considerable  part  of  the  export  trade,  that  part, 
namely,  which  is  offset  by  imports,  but  the  excess  or 
balance  of  trade  they  cannot,  as  banks,  take  care  of.  The 
exporter  and  the  producer  are  active  business  men  who 
can  spare  only  a  part  of  their  capital. 

By  elimination,  therefore,  we  are  driven  back  to  the 
investor,  the  man  has  idle  funds  which  he  can  afford  to 
place  on  long  time,  the  man  who  is  interested  in  an  in- 
come from  his  funds  rather  than  in  the  active  employ- 
ment of  his  funds.  How  can  we  reach  the  investor.  We 
cannot  go  to  him  and  say  that  he  should  place  his  money 
at  risk  in  foreign  lands  in  order  that  exporters  and  others 
should  make  profits  by  selling  goods  in  these  foreign 
lands.  We  must  provide  margins  to  protect  him  from 
risk.  We  must,  in  addition,  offer  him  interest  at  rates 
sufficiently  attractive  to  make  it  worth  his  while  to  pro- 
vide the  funds. 

The  United  States  has  long  been  a  borrowing  country. 
With  great  undeveloped  resources  and  rapidly  growing 
population,  we  have  been  insatiable  in  our  demand  for 
capital.  But  opportunities  for  investment  at  high  return 
in  Western  Europe  have  long  been  scarce,  and  a  surplus 
of  capital  seeking  foreign  investments  at  higher  rates 
has  predominated  for  a  century  down  to  the  outbreak  of 
the  war.  Europe  has  been  used  to  a  low  rate  at  home, 
and  it  comes  with  a  distinct  shock  to  many  of  the  finan- 
ciers and  industries  of  Europe,  to  learn  that  higher  rates 


268        THE  INTERNATIONAL  TRADE  CONFERENCE 

must  be  paid  in  the  United  States.  The  rule  is  that  in- 
terest rates  in  rapidly  growing  countries  are  high,  and 
that  in  rich  and  well-developed  countries  they  are  low. 

Further  than  this,  a  borrowing  country  must  expect  to 
pay  more  for  money  obtained  in  a  foreign  country  than 
the  rates  ruling  in  the  loaning  country.  An  investor  nat- 
urally prefers  to  place  his  funds  at  home.  Interest  rates 
and  security  being  equal,  he  will  invest  at  home.  He  will 
invest  with  corporations  with  whose  personnel  he  is  ac- 
quainted, and  with  whose  operation  he  is  familiar.  He 
will  do  this  although  the  domestic  security  be  less  secure, 
because  he  knows  the  risk  of  the  domestic  enterprise.  It 
is,  therefore,  an  inevitable  economic  fact,  that  a  borrow- 
ing country  must  pay  more  than  the  market  rate  for 
money  on  a  large  scale.  We  ourselves  did  this  in  borrow- 
ing from  Europe  before  the  war.  The  situation  is  now  re- 
versed, and  we  must  reckon  with  that  fact. 

Further,  there  is  a  great  world-wide  scarcity  of  capital. 
The  world  has  devoted  its  energies  for  the  past  five  years 
to  the  destruction  of  capital.  Europe  has  done  it,  and  we 
have  done  it.  Instead  of  building  railroads,  we  have  been 
manufacturing  explosives ;  instead  of  maintaining  and  im- 
proving our  public  utilities  we  have  been  making  cannon, 
instead  of  building  dwellings,  we  have  been  building  fac- 
tories for  the  manufacture  of  airplanes.  There  is,  there- 
fore, an  unprecedented  demand  for  capital  in  the  United 
States,  and  interest  rates  on  long-time  investments  are 
therefore  correspondingly  high.  The  rates,  which  must 
be  offered  American  investors,  therefore,  in  connection 
with  European  investments  must  be  high  enough  to  tempt 
the  additional  saving,  which  will  be  required  if  America 
is  to  supply  capital  both  for  her  own  and  European  needs. 
High  rates  on  long-time  European  investments  are  the 
sure  means  of  making  the  supply  of  capital  adequate.  If 
we  want  the  investor  to  save  more  than  he  is  now  saving, 
we  must  offer  him  additional  inducement  to  do  so. 

We  must  then  reach  the  investor.  We  must  offer  him 
adequate  security  and  adequate  interest.  How  are  we 
going  to  do  it  ? 


THE  INTERNATIONAL  TRADE  CONFERENCE        269 

There  is  no  one  method.  There  will  be  no  single  agency. 
One  method  along  which  we  may  proceed,  however,  would 
be  based  on  the  following  principle : 

We  might  organize  corporations  under  the  Edge  Bill, 
assuming  that  that  legislation  is  completed  in  time,  and 
in  satisfactory  form.  The  capital  of  these  corporations 
will  be  provided  in  part  by  bankers,  but  in  the  major  part 
by  exporters  and  producers  of  goods  for  export.  While 
it  is  recognized  that  exporters  and  producers  of  goods 
cannot  bear  the  whole  burden,  it  is  proper  that  they,  as 
the  ones  who  are  to  make  the  greatest  profits  should  pro- 
vide the  major  part  of  the  margin  of  capital  which  bears 
the  first  risk.  These  corporations  will  advance  loans  to 
business  men  in  Europe,  taking  their  obligations  from 
them.  They  will  expect  to  have  the  guarantee  of  Euro- 
pean governments  and  municipalities  for  these  obliga- 
tions, and  they  will  expect  that  the  European  beneficiaries 
of  the  loans  will  provide  a  substantial  proportion  of  the 
dollars  required  to  finance  the  export  of  goods  from  other 
sources.  If,  for  example,  one  hundred  thousand  dollars' 
worth  of  cotton  were  to  be  exported,  under  these  princi- 
ples the  Edge  Bill  corporation  will  not  be  expected  to  loan 
the  whole  one  hundred  thousand  dollars,  but,  say,  eighty 
thousand  dollars,  leaving  the  European  importer  to  find 
twenty  thousand  dollars  from  other  sources.  The  Edge 
Bill  corporation  will  then  issue  its  own  debentures  to  the 
American  investor.  These  debentures  will  have  a  mar- 
gin of  protection  in  the  capital  of  the  Edge  Bill  corpora- 
tion. Thev  will  have  an  additional  margin  of  protection 
in  the  dollars  provided  by  the  European  producer  of  each 
shipment  of  goods,  secured  outside  the  Edge  Bill  corpora- 
tion. They  will  be  protected  by  the  general  assets  of  the 
European  borrower.  They  will  be  protected  by  the  guar- 
antees of  the  European  governments  or  municipalities. 
Thus  protected,  and  with  attractive  rates  of  interest,  they 
can  be  sold  to  the  American  investor  in  very  substantial 
amounts.  In  selling  them,  we  shall  make  large  use  of  the 
existing  bond  selling  machinery. 

We  shall  offer  them  as  sound  investments  and  would  in- 


270        THE  INTERNATIONAL  TRADE  CONFERENCE 

vite  their  purchase  as  good  business.  And  we  shall  find, 
powerfully  supplementing  this  business  appeal,  a  great 
fund  of  loyal  sentiment  upon  the  part  of  our  people  to- 
ward our  friends  in  Europe. 

But  there  is  no  one  magic  recipe  which  can  be  offered  as 
a  solution,  and  least  of  all,  one  supplied  by  governmental 
authority  or  action.  We  are  here  dealing  with  the  funda- 
mental economic  principles  with  their  unalterable  causes 
and  effects,  which  transcend  all  powers  of  the  most  pow- 
erful governments.  The  normal  economic  process  of  the 
world  has  been  interrupted,  and  just  in  that  proportion 
that  these  fundamental  forces  have  been  disturbed,  so 
will  the  period  of  complete  recovering  be  postponed.  The 
world,  so  to  speak,  has  been  very  ill.  It  has  been  a  rav- 
ing maniac.  Its  recovery  will  be  slow  and  its  mental  proc- 
ess become  normal  only  after  the  memory  of  the  horri- 
ble nightmare  has  in  part  been  forgotten.  We  must  slow- 
ly gather  together  the  bits  of  broken  furniture,  replace 
the  household  goods,  and  establish  our  peaceful  domestic 
and  industrial  household. 

The  governments  of  many  countries  have  been  sorely 
taxed  to  meet  the  great  problems  which  have  confronted 
them  during  the  past  five  years.  In  some  quarters  the 
present  social,  economic  and  political  organization  is  be- 
ing attacked.  Is  it  wise  to  complicate  further  the  prob- 
lems of  our  governments  and  perhaps  place  in  still  greater 
jeopardy  the  prevailing  economic  and  social  organization 
by  looking  to  the  government  alone  to  work  out  a  solu- 
tion, which,  if  left  to  its  citizens,  would  in  due  time  and 
season  be  solved  so  far  as  there  is  any  final,  complete  and 
important  solution  for  such  a  complex  situation? 

In  Europe,  new  states  have  been  formed  with  peoples 
who  have  not  had  the  responsibility  and  experience  in 
conducting  a  political  society.  New  political  forces  have 
arisen  in  the  old  nations  and  the  alinement  of  these  forces 
has  radically  changed  in  the  new,  as  well  as  in  the  old 
countries.  Political  ferment  is  at  work  in  most  sections. 
Industrial  and  economic  activity  and  prosperity  must  al- 
ways presuppose  political  peace  and  security. 


THE  INTERNATIONAL  TRADE  CONFERENCE        271 

A  second  factor  affecting  the  problem  is  the  labor  situ- 
ation. Labor  has  been  advancing  to  a  greater 
position  of  power  in  our  own  and  all  European 
countries,  and  the  war  has  greatly  accelerated  this  move- 
ment. It  is  now  a  question  whether  labor  can  use  its  own 
interest,  and  at  the  same  time  keep  up  production  and 
produce  that  surplus  of  goods  for  exchange  with  other 
peoples,  or  whether  there  will  be  a  general  slowing  up  of 
industrial  activity,  resulting  in  either  no  net  increase  in 
goods,  or  in  an  actual  drawing  upon  the  past  accumulated 
stock  of  capital.  Those  who  labor  either  with  hand  or 
head  must  realize  that  only  an  honest  day's  work  will  re- 
ceive either  for  them  or  for  their  fellow  men  that  pros- 
perity and  well-being  which  all  wish,  but  which  cannot  in 
any  mysterious  manner  be  supplied  by  government  or  by 
any  other  socially  constituted  organization. 

It  is,  therefore,  desirable  that  no  artificial  or  forced  re- 
sumption of  industrial  life  be  attempted,  for  such  is 
neither  possible  nor  advantageous.  There  is  already  some 
evidence  that  in  many  of  these  European  countries,  the 
threads  of  normal  industrial  activity  are  being  taken  up 
as  a  result  primarily  of  the  activities  of  normal  individ- 
ual enterprise  assisted  here  and  there  by  the  govern- 
ments. 

Both  for  the  final  good  of  the  European  people,  as  well 
as  our  own,  the  normal  basis  of  all  profitable  trading 
should  be  resumed  as  quickly  as  possible.  That  is,  there 
should  be  an  exchange  of  goods  for  goods  and  not  a  con- 
tinuation of  forced  trading  based  upon  an  extensive  sys- 
tem of  credit.  It  is  just  as  true  now  as  before  the  war, 
that  the  European  nations  can  produce  many  goods  which 
we  either  cannot  produce,  or  produce  as  cheaply  and, 
therefore,  a  mutually  profitable  basis  of  trade  exists.  The 
people  of  the  United  States  are  becoming  very  much  in- 
terested in  foreign  trade  and  quite  properly  so.  But,  it 
would  seem  that  some  of  our  people  consider  the  end  to 
be  achieved  in  foreign  trading  is  always  to  sell,  but  never 
to  buy  goods,  seeking  on  the  contrary  an  exchange  of 
goods  for  money. 


272        THE  INTERNATIONAL  TRADE  CONFERENCE 

The  items — food,  raw  materials,  and  industrial  equip- 
ments to  rehabilitate  her  industrial  machinery — are  the 
pressing  need  of  Europe.  If  they  can  be  supplied,  these 
countries  will,  after  a  period,  perhaps  a  longer  one  than 
is  popularly  supposed,  be  in  position  to  resume  trading 
with  us  on  a  basis  somewhat  approximating  that  which 
prevailed  before  the  war.  However,  this  result  will  occur 
only  if  we  are  willing  to  take  goods  from  these  countries 
in  payment  for  those  commodities  which  we  wish  to  ex- 
port to  them.  Even  the  interest  on  the  capital  which  we 
have  loaned  to  them  must  be  received  by  us  primarily  in 
goods. 

We  do  not  wish  to  be  forced  to  meet  that  kind  of  com- 
petition which  is  organized  by  a  nation  with  political  and 
military  ends  in  view,  but  we  do  not  fear  legitimate  indi- 
vidual business  competition  with  our  European  friends  in 
which  each  trader  seeks  his  own  profits  and  the  competi- 
tion is  based  upon  sound  economic  principles.  We  know 
that  we  must  buy  from  others  if  we  expect  to  sell  to  them, 
for  we  know  that  usually  a  rich  neighbor  is  a  good  cus- 
tomer. The  European  nations  were  our  best  customers 
in  the  ante-bellum  period,  and  we  hope  they  will  again 
become  so. 

No  nation,  no  more  than  an  individual,  can  live  unto 
itself  either  socially  or  industrially.  We  wish  to  share 
the  burdens  and  responsibilities  of  the  world  with  other 
nations. 

The  ships  of  state  have  for  many  days  been  tossed 
about  by  the  waves  of  an  angry  sea,  and  now  that  the 
storm  has  subsided,  we  look  about  with  anxious  eyes  for 
ports  of  safety.  May  we  all  find  a  secure  haven  and 
never  again  set  sail  upon  so  perilous  a  voyage. 


THE  INTERNATIONAL  TRADE  CONFERENCE        273 

CLOSING  SESSION. 
FRIDAY,  OCTOBER  24. 
Mr.  Bedford,  in  the  chair,  said: 

Gentlemen:  We  have  come  to  the  final  closing  session 
of  our  gathering.  The  day  has  been  spent  in  finance  and 
the  consideration  of  that  all-important  question  that  re- 
lates to  the  problems  with  which  we  have  been  con- 
fronted and  which  we  have  been  discussing  so  earnestly 
with  our  friends  from  abroad.  Tonight  the  problem  is  to 
be  discussed  further  in  one  address,  the  first  address  of 
the  evening.  I  have  the  honor  of  introducing  to  you  the 
Governor  of  the  Federal  Reserve  Board  of  the  United 
States.  You  who  come  to  us  from  overseas  are  doubtless 
aware  that  we  have  nothing  in  this  country  exactly  cor- 
responding to  the  Bank  of  England  or  the  Bank  of 
France.  In  many  experiments  and  after  most  careful 
study,  especially  of  the  financial  experience  of  Europe, 
our  country  a  few  years  ago  brought  into  being  what  is 
known  as  the  Federal  Reserve  System.  The  central 
design  of  this  plan  was  to  create  the  flexible  banking  sys- 
tem which  should,,  as  nearly  as  might  be  possible,  place 
at  the  disposal  of  the  commerce  of  the  United  States  as  a 
whole  the  credit  resources  of  the  country  as  a  whole. 
We  were  not  a  minute  too  soon  in  bringing  this  plan  into 
being  for  it  has  served  as  the  mighty  bulwark  for  our 
country  and  for  the  world  as  a  whole  in  mobilizing  the 
credit  resources  of  the  nation  in  behalf  of  our  war  financ- 
ing. The  extraordinary  facility  with  which  our  country 
was  able  to  float  some  twenty  billion  dollars  in  Liberty 
Loans  was  in  no  small  measure  due  to  the  strength  and 
adaptability  of  our  Federal  Reserve  System ;  and  now,  as 
we  enter  the  era  of  reconstruction,  our  Federal  Reserve 
System  will  necessarily  be  the  keystone  of  our  financial 
arch.  The  extension  of  foreign  credits  of  this  country 
will  henceforth  doubtless  be  upon  private  initiative,  but 


274        THE  INTERNATIONAL  TRADE  CONFERENCE 

in  order  to  accomplish  great  results  it  will  be  necessary 
at  all  times  to  have  the  encouragement  and  cooperation 
of  the  Federal  Reserve  System.  The  function  of  this 
system  as  the  ultimate  citadel  of  rediscount  is  of  para- 
mount importance  in  any  plan  involving  the  extension 
of  large  credit. 

Since  the  establishment  of  a  Federal  Reserve  System 
we  have  had  at  its  head  a  man  of  great  sagacity,  sound- 
ness of  mind  and  courage.  The  building  of  this  gigantic 
structure,  of  necessity  becoming  practically  overnight 
the  bedrock,  foundation  stone  in  a  huge  and  complicated 
banking  system,  created  for  Governor  Harding  and  his 
fellow  members  of  the  Federal  Reserve  Board,  difficul- 
ties which  has  seldom  had  to  be  met  by  financiers.  That 
these  difficulties  were  overcome,  however,  and  that  the 
Federal  Reserve  System  is  already  well  established  as  a 
dependable  anchorage  for  national  competence  is  due  in 
no  small  measure  to  the  conservatism  and  vision  with 
which  the  activities  of  this  institution  have  been  guided 
from  its  very  outset.  It  is,  therefore,  with  peculiar  pleas- 
ure and  satisfaction  that  we  shall  now  have  the  honor 
of  listening  to  Hon.  William  P.  Harding,  Governor  of  the 
Federal  Reserve  Board. 


Address  of  Hon.  William  P.  G.  Harding, 

Governor  of  the  Federal  Reserve  Board. 

Mr.  Chairman,  Members  of  the  Conference,  Ladies  and 
Gentlemen:  My  colleagues  of  the  Federal  Reserve  Board 
and  myself  have  been  intensely  interested  in  the  prob- 
lems which  you  have  been  discussing  during  your  sessions 
this  week  and  we  all  regret  exceedingly  our  inability  to 
be  present  in  order  that  we  could  get  the  benefit  of  these 
discussions,,  but  our  duties  are  such  that  we  are  not  al- 
ways the  masters  of  our  own  time  and  this  last  week  has 
been  an  unusually  busy  one  even  for  the  Federal  Reserve 
Board.  I  am  exceedingly  pleased,  however,  to  be  able  to 


THE  INTERNATIONAL  TRADE  CONFERENCE        275 

be  here  tonight  and  to  extend  to  you  on  behalf  of  my  col- 
leagues and  myself  our  belated  greetings  to  those  gentle- 
men who  have  come  across  the  Atlantic  to  discuss  these 
problems  with  you,  the  proper  solution  of  which  means 
so  much  to  you  and  so  much  to  us. 

Although  we  are  separated  by  3,000  miles  of  ocean 
our  recent  associations,  our  improved  methods  of  trans- 
portation, our  business  interests  have  brought  us  very 
closely  together  and  your  problems,  gentlemen,  from  the 
other  side  of  the  ocean,  are  very  similar  to  ours  on  this 
side.  We  can  join  you  in  a  full  appreciation  of  the  fact 
that  the  problems  and  perils  of  peace,  of  reconstruction 
and  readjustment  are  almost  as  difficult  and  dangerous, 
although  in  a  different  form,  as  the  problems  and  perils 
of  war  itself.  We  are  suffering  in  this  country  just  as 
you  are  suffering  in  Europe  from  a  new  malady  or  a  com- 
plication of  diseases.  I  shall  discuss,  however,  tonight 
only  one  form  of  the  trouble. 

The  great  war  that  snuffed  out  the  spark  of  life  of  over 
seven  and  one-half  millions  of  men,  destroyed  billions  of 
dollars'  worth  of  wealth,  real  wealth ;  not  gold  or  the  rep- 
resentation of  gold  in  paper  currency,,  but  goods,  com- 
modities which  are  needed  for  everyday  life.  Goods  are 
the  world's  real  wealth  and  the  world  today  is  suffering 
from  the  shortage  of  goods.  There  is  no  proper  propor- 
tion between  the  volume  of  credit  and  the  volume  of  goods 
either  in  this  country  or  in  the  old  world.  Your  situa- 
tion, of  course,  in  that  respect  is  not  as  favorable  as  our 
own  because  you  on  the  other  side  bore  the  brunt  of  the 
war  and  were  engaged  in  that  struggle  for  two  years  and 
a  half  before  we  entered  it  to  take  our  place  at  your  side 
and  owing  to  your  large  purchases  during  those  years  we 
necessarily  received  some  material  benefit  growing  out  of 
your  own  wants  and  necessities.  We  are  passing  through 
a  period  now  in  this  country  of  relaxation  from  the  war 
regime.  We  could  not  look  the  facts  in  the  face  without 
confessing  candidly  that  we  have  been  extravagant  dur- 
ing the  past  year.  We  have  not  produced  enough,  we 
have  spent  too  much.  One  of  our  needs  is  greater  pro- 


276        THE  INTERNATIONAL  TRADE  CONFERENCE 

duction  and  smaller  consumption.  We  ought  to  apply  the 
principles  of  the  only  doctrine  that  is  going  to  work  us  out 
of  our  present  difficulties,  the  great  principle  of  work  and 
save.  There  must  be  conservation  both  of  capital  and 
credit  in  order  that  an  adequate  supply  of  each  may  be 
available  for  the  process  of  production  and  distribution. 
But,  unfortunately,  the  only  kind  of  conservation  in  evi- 
dence today  is  the  conservation  of  productive  energy. 
Still,  gentlemen,  America  has  had  its  crisis;  it  has  faced 
other  problems;  it  has  overcome  all  dangers  and  diffi- 
culties up  to  this  good  hour  and  I  do  not  believe  there 
is  a  man  in  this  audience  that  does  not  feel  in  the  bottom 
of  his  heart  that  America  and  the  civilization  of  Europe 
is  going  to  be  preserved  on  the  same  high  standards 
which  have  already  been  set. 

We  in  America  produce  normally  a  surplus  of  essen- 
tial commodities  for  exports.  We  have  our  great  crops 
of  grain  and  of  cotton;  we  have  the  products  of  our 
mines,  coal,  fuel,  oil;  we  have  copper  and  metals  of  all 
kinds,  most  of  which  you  need  in  your  present  circum- 
stances. 

In  considering  our  trade  relations,  gentlemen,  I  think 
it  important  that  we  should  apply  a  principle  which  we 
all  applied  during  the  darkest  days  of  the  war,  during 
the  time  when  we  were  exercising  a  discriminating  judg- 
ment between  essentials  and  non-essentials.  I  do  not  be- 
lieve it  would  be  good  policy  for  you  in  Europe,,  or  for  us 
in  America  to  attempt  to  have  you  buy  from  us,  partic- 
ularly on  credit,  things  that  you  do  not  actually  need.  It 
so  happens  that  those  things  which  we  produce  normally, 
exporting  the  surplus,  are,  in  the  main,  necessities. 
You  need  now  on  the  other  side  machinery,,  equip- 
ment, raw  materials  in  order  that  you  may  resume  your 
own  normal  activities;  in  order  that  you  may  employ 
your  idle  people;  in  order  that  your  production  may  be 
brought  back  to  a  point  where  your  countries  will  be  self- 
sustaining  and  where  they,  in  turn,  will  have  something 
to  send  each  other  and  to  send  to  us.  I  am  sure  that  we 
are  all  interested  in  the  figures  relating  to  export  trade. 


THE  INTERNATIONAL  TRADE  CONFERENCE        277 

The  sharp  discounts  in  foreign  exchanges  which  have 
been  prevailing  for  some  time  past  are  the  result  of  a  con- 
dition. We  have  been  sending  you  more  goods  than  you 
are  able  to  pay  for  either  in  cash  or  in  commodities. 
This  condition  is  reflected  in  your  foreign  exchange.  But 
the  very  fact  that  your  exchanges  are  low  aid  you  in 
sending  goods  to  us.  A  condition  of  that  kind  helps  the 
American  importer  and  makes  the  problems  of  the  Amer- 
ican exporter  more  complicated.  Most  of  you  have  seen, 
I  have  no  doubt,  the  figures  given  out  officially  this  morn- 
ing regarding  the  exports  and  imports  into  the  United 
States  during  the  month  of  September.  Our  exports 
were  $593,000,000;  our  imports  $435,000,000,  being  an 
excess  of  exports  over  imports  of  $158,000,000  which,  by 
the  way,  is  the  smallest  excess  of  exports  that  this  coun- 
try has  seen  since  September,  1917.  Those  figures,  gen- 
tlemen, have  a  meaning.  I  think  they  ought  to  be  full  of 
encouragement  to  you  on  the  other  side  and  to  us  as  well. 
It  is  to  our  interest  here  in  America  to  see  Europe  back 
on  her  feet.  We  are  met  here  to  consider  the  ways  and 
means  of  helping  you  get  back  on  your  feet.  I  think  it  is 
generally  conceived  that  in  order  to  enable  our  exporters 
to  continue  their  business,  in  order  to  enable  them  to  sell 
goods  abroad,  it  will  be  necessary  to  extend  longer  credits 
than  can  be  granted  by  our  commercial  banks  which  have 
deposit  liabilities  payable  on  demand.  The  Federal  Re- 
serve Banks,  while  they  are  intensely  interested  in  all  mat- 
ters pertaining  to  foreign  trade,  are  not  equipped,  and 
not  intended,  nor  are  they  permitted  under  the  law,  to 
engage  in  transactions  relating  to  long  credits.  No  Fed- 
eral Reserve  Bank  is  permitted  to  discount  any  paper 
having  a  maturity  longer  than  90  days  to  run  with  the 
single  exception  of  agricultural  paper,  or  paper  based  on 
live-stock  may  be  discounted  provided  the  maturity  is 
no  longer  off  than  six  months.  National  banks  may  ac- 
cept up  to  six  months  in  transactions  involving  the  im- 
portation and  exportation  of  goods,  but  the  Federal  Re- 
serve bank  can  only  rediscount  an  acceptance  or  buy  an 
acceptance  when  that  acceptance  is  not  further  off  from 


278        THE  INTERNATIONAL  TRADE  CONFERENCE 

its  maturity  than  90  days.  Consequently,  it  becomes 
necessary  in  the  present  situation  to  devise  some  other 
financial  machinery  expressly  designed  to  facilitate  the 
granting  of  the  longer  credits  which  are  demanded  in 
the  present  circumstances. 

Under  Section  25  of  the  Federal  Reserve  Act,  national 
banks  having  a  surplus  of  not  less  than  $1,000,,000  are 
permitted  to  establish  branches  in  foreign  countries  or 
they  can  subscribe  an  amount  not  exceeding  ten  per  cent 
of  their  own  capital  and  surplus  stock  in  corporations  or 
banks  principally  engaged  in  foreign  banking.  A  num- 
ber of  these  banks  have  been  organized.  One  of  our 
largest  national  banks  has  a  great  number  of  branches 
not  only  in  South  American  countries  but  throughout 
Europe.  Those  facilities  coupled  with  the  facilities  af- 
forded by  these  other  banks  of  which  a  number  of  na- 
tional banks  are  stockholders,  encircle  the  entire  world; 
but  these  banks  are  not  organized  for  granting  long 
credits.  They  deal  in  bills  of  exchange  which  they  expect 
to  have  paid  at  their  maturity  or  perhaps  one  or  two  re- 
newals. The  great  need  in  the  present  situation  is  for 
some  financial  machinery  through  which  these  longer 
credits  can  be  established.  We  of  the  Federal  Reserve 
Board  in  our  study  of  these  problems  reached  the  con- 
clusion some  time  ago  that  financing  foreign  trade  is  es- 
sentially an  investment  problem.  The  appeal  must  be 
made  to  the  investing  public  or  America  rather  than  to 
the  commercial  banks.  Congress,  at  the  suggestion  of  the 
Federal  Reserve  Board,  some  time  ago  passed  a  bill  which 
has  been  signed  by  the  President  and  is  now  a  law  au- 
thorizing National  banks,  regardless  of  their  size,  to  sub- 
scribe as  much  as  five  per  centum  of  their  capital  and 
surplus  to  stock  incorporations  engaged  in  some  form  of 
financing  necessary  or  conducive  to  building  up  our  for- 
eign trade.  There  is  now  pending  in  Congress  a  measure 
known  as  the  Edge  Bill,  which  has  already  passed  the 
Senate  and  which  was,  on  yesterday,  reported  in  an 
amended  and  improved  form  by  the  House  Committee  on 
Banking  and  Currency.  We  hope  that  this  measure  may 


THE  INTERNATIONAL  TRADE  CONFERENCE        279 

soon  become  a  law  and  we  believe  that  corporations  will 
be  organized  under  the  provisions  of  this  bill,  when  it 
becomes  a  law,  which  will  be  very  helpful  in  bringing  to 
Europe  the  goods  that  they  need  from  this  country,  be- 
cause they  will  enable  Europe  to  get  the  credits  for  the 
long  time  necessary. 

In  practice  the  provisions  of  the  Edge  Bill  are  about  as 
follows:  I  understand  that  Senator  Edge  himself  ex- 
plained it  clearly  to  you  the  other  day  so  I  shall  not  at- 
tempt to  elaborate  upon  it.  The  principle  is  of  Govern- 
ment control.  The  Government  itself  does  not  propose, 
as  I  understand  it,  to  extend  any  further  direct  aid  in 
financing  foreign  trades.  As  you  know,  the  Government 
of  the  United  States  was  authorized  soon  after  it  entered 
the  war,  to  make  advances  of  about  ten  billions  of  dol- 
lars to  the  countries  which  was  associated  with  us  in  the 
war.  Nearly  all  of  that  vast  sum  has  now  been  allotted 
and  used.  Only  a  few  hundred  millions  remain  unused. 
There  is  no  disposition  whatever,,  that  I  have  been  able 
to  notice  in  Washington,  to  extend  this  war-time  policy 
of  direct  Government  loans  in  a  period  of  peace,  and  I 
think  that  it  is  generally  understood  that  future  financ- 
ing for  foreign  trade  come  as  a  result  of  individual  enter- 
prise and  private  initiative.  The  Government  could  not, 
without  a  very  harmful  extension  of  an  already  neces- 
sarily expanded  credit  situation,  issue  any  more  obliga- 
tions for  any  purpose;  nor  could  the  banks,  as  I  have 
already  explained,  which  have  liabilities  payable  on  de- 
mand afford  to  tie  themselves  up  with  a  large  volume  of 
unliquid  assets. 

Under  the  Edge  Bill  it  is  proposed  to  organize  corpo- 
rations having  a  capital  stock  of  not  less  than  $2,000,000, 
for  the  purpose  of  financing  foreign  trade  and  of  pro- 
moting that  trade.  These  corporations  will  be  authorized 
to  purchase  foreign  securities  and  make  loans  abroad. 
They  will  be  authorized  with  the  approval  of  the  Federal 
Reserve  Board  in  which  body  it  is  placed  for  supervision, 
to  offer  its  own  obligations  or  debentures  to  the  investing 
public  which  are  specifically  secured  by  obligations  which 


280        THE  INTERNATIONAL  TRADE  CONFERENCE 

they  had  already  taken   in  their  foreign  trade  trans- 
actions. 

America  has  loaned  Europe  ten  billions  of  dollars.  The 
United  States,  which  was  not  a  bond-buying  nation,  has 
subscribed  over  twenty-five  billion  dollars'  worth  of 
Government  securities  since  the  25th  of  April,  1917.  Be- 
fore that  time  there  were  only  about  three  hundred  thou- 
sand men  known  as  investors  on  the  list  of  reputable 
bond  houses.  There  are  now  over  30,000,000  of  Ameri- 
can people,  30,000,000  men,  women  and  children,  who 
know  what  a  bond  is,  who  have  been  subscribers  for 
issues  of  Liberty  Bonds  and  of  Victory  Notes.  Of  course, 
in  placing  that  vast  volume  of  securities,  it  was  necessary 
to  appeal  to  the  patriotic  unselfishness  of  the  American 
people  and  that  appeal  was  not  made  in  vain.  It  met 
with  a  magnificent  response.  But,  gentlemen,  we  have 
come  now  to  that  time  when  cooler  considerations  must 
be  taken  into  account.  We  cannot  appeal  to  patriotism 
in  a  matter  of  trade.  While  we  love  you  abroad,  our  late 
confreres  in  this  great  struggle;  while  we  desire  to  help 
you,  you  must  realize  that  you  must  offer  us  a  business 
proposition.  We  believe  that  your  external  debt  is 
good — every  country's  external  debt  is  going  to  prove  to 
be  good,  in  my  judgment.  We  believe  that  you  have 
ample  security  to  offer  against  any  loan  that  you  may 
wish  to  raise  in  this  country,  but  I  want  to  call  your  at- 
tention to  the  fact  that  while  we  have  some  very  shrewd 
and  successful  international  bankers  in  this  country; 
while  we  have  great  banks  of  deposit  and  discounts  which 
have  grown  enormously  during  the  past  five  years,,  that 
the  transactions  of  our  larger  commercial  banks  in  the 
foreign  field  have  been  confined  to  the  purchase  of  bills 
of  exchange  drawn  against  documents;  and  the  trans- 
actions of  our  bond  houses,  as  a  rule,  have  been  confined 
to  the  placing  of  Government  securities  issued  by  foreign 
nations  and  the  placing  abroad  of  private  securities  is- 
sued by  American  firms  and  corporations.  In  other 
words,  gentlemen,  our  familiarity  with  the  foreign  field 
has  been  in  the  other  direction.  Up  to  a  very  few  years 


THE  INTERNATIONAL  TRADE  CONFERENCE       281 

ago  we  were  more  familiar  in  placing  American  securi- 
ties in  Europe  than  we  were  in  placing  European  loans 
and  securities  in  America.  Now  we  have  got  to  educate 
the  people  to  it.  The  national  bank  is  usually  a  leader, 
a  financial  leader,  in  its  community.  The  merchants  and 
the  farmers  of  the  community  form  the  habit  of  going 
to  their  trusted  banker  and  asking  his  opinion  and  advice 
about  different  financial  propositions.  We  realized  that 
if  it  were  sought  to  establish  these  new  corporations  to 
engage  in  an  unfamiliar  field  that  it  would  be  very  neces- 
sary to  have  the  support  and  the  influence  of  the  banks 
of  the  country,  which  includes  the  national  banks.  Some 
of  the  state  laws  already  permitted  state  banks  to  take 
stock,  but  the  national  banks  could  not  take  stock  in  enter- 
prises of  this  sort  until  Congress  permitted  them  to  do  so 
under  the  act  which  passed  about  a  month  ago.  The 
amount  that  the  national  banks  can  take  is  comparatively 
small — only  five  per  cent  of  the  capital  and  surplus — 
but  the  moral  effect  is  there.  As  these  Edge  Bill  corpor- 
ations are  organized  it  is  supposed  to  interest  the  lead- 
ing national  banks  of  every  community.  It  is  supposed 
to  organize  corporations  which  are  particularly  interested 
in  the  export  of  some  product  in  which  that  community 
is  vitally  interested — cotton,  copper,  coal,  any  of  these 
great  staple  articles. 

There  are  a  great  many  people  interested  in  the  free 
outflow  of  the  exports  of  the  surplus  of  these  commodi- 
ties. If  they  find  that,  owing  to  exchange  difficulties  in 
Europe  it  is  impossible  for  that  trade  to  flow  freely  they 
will  be  in  sympathy  from  the  outset  with  any  movement 
which  will  tend  to  let  these  goods  go  abroad  in  their  ac- 
customed way.  The  proposition  may  be  put  up  to  a  small 
investor  to  take  stock.  The  proposition  looks  good;  but 
he  will  go  to  his  banker  and  say:  "Well,  what  do  you 
think  of  this  ?"  If  the  banker  is  in  a  position  to  say :  "I 
think  well  of  it  and  our  bank  is  going  to  take  stock  in  it 
to  the  extent  that  the  law  allows,"  you  know  that  that 
banker's  opinion  is  going  to  carry  far  greater  weight 
with  his  client  than  would  be  the  case  if  the  banker 


282        THE  INTERNATIONAL  TRADE  CONFERENCE 

merely  said :  "Yes,,  we  think  it  is  all  right ;  we  are  not 
going  to  take  any  stock  in  it;  we  can't."  It  is  just  the 
difference,  gentlemen,  between  "go  on"  and  "come  on." 

We  believe  that  a  number  of  these  corporations  are 
going  to  organize  in  various  sections  of  the  country  under 
the  provision  of  the  Edge  Bill.  Then  the  proposition 
comes:  What  is  that  corporation  going  to  do  to  replen- 
ish its  funds  in  order  to  keep  in  business  after  it  has 
loaned  out  its  capital?  These  corporations  will  not  be 
allowed  to  receive  deposits.  They  will  not  conflict  with 
the  commercial  banks  in  any  way.  It  is  proposed  to  allow 
them  to  put  securities  in  trust ;  to  issue  their  obligations 
or  debentures  against  those  securities  and  go  to  the  in- 
vesting public. 

Now,  gentlemen  from  the  other  side,  we  have  an  in- 
come tax  in  this  country  as  well  as  you.  Our  people  know 
what  high  taxes  are ;  and  in  their  investments  they  figure 
on  a  net  return.  They  have  been  accustomed  to  a  higher 
return  than  they  were  formerly  accustomed  to  have. 
Even  our  government  four  and  one-quarter  per  cent 
bonds  are  not  selling  at  par.  It  is  going  to  be  necessary 
for  these  obligations  to  be  offered  to  the  American  people 
on  an  attractive  income  basis.  It  may  be  six  per  cent ;  it 
may  be  seven  per  cent;  I  do  not  know.  This  is 
what  you  must  bear  in  mind:  Here  is  something  new. 
We  have  got  to  introduce  this  system  into  this  country. 
We  have  got  to  inspire  the  confidence  of  the  American 
people.  These  securities  must  be  absolutely  good.  We 
are  going  to  need  the  cooperation  of  the  European  bank- 
ers who  are  skilled  judges  of  credits  on  the  other  side. 
They  are  familiar  with  these  world  transactions  far  more 
than  we  are.  We  want  your  help  and  cooperation.  We 
may  want  your  guarantees;  possibly  in  some  cases  we 
may  want  some  kind  of  obligation  of  guarantee  from 
governments.  It  is  just  as  important  for  you  as  for  us 
that  these  obligations  be  safe ;  and  the  safer  they  are  the 
lower  the  rate  of  interest.  But  I  do  not  want  to  create 
any  false  hope  that  there  is  going  to  be  any  four  or  five 
per  cent,  money  floating  around.  We  have  got  to  look  at 


THE  INTERNATIONAL  TRADE  CONFERENCE        283 

this  in  the  cold  light  of  business  and  bear  in  mind  that 
there  is  a  great  use  of  credit  on  this  side.  There  has 
been  a  great  spirit  of  investment,  of  speculation  if  you 
want  to  call  it — on  this  side. 

The  Government,  however,  is  at  least  giving  direct  help 
in  one  way.  Congress  has  authorized  the  War  Finance 
Corporation,  which  has  a  capital  stock  of  $500,000,000, 
all  owned  by  the  Treasury  of  the  United  States,  to  ad- 
vance an  aggregate  of  not  to  exceed  $1,000,000,000  in  the 
aid  of  foreign  trade  during  a  period  of  one  year  from  the 
official  proclamation  of  the  Treaty  of  Peace.  Those 
credits  may  run  not  longer  than  five  years.  My  idea  of 
the  aid  that  the  War  Finance  Corporation  is  going  to  give 
and  the  manner  in  which  it  is  going  to  be  given  is  about 
like  this — I  happen  to  be  a  director  of  the  War  Finance 
Corporation,  but  I  cannot  say  officially  because  we  have 
not  had  a  meeting  and  decided  definitely  upon  this  pol- 
icy— my  idea  of  what  will  be  done  is  this:  Assume  that 
there  is  a  corporation  organized  under  the  Edge  Bill  for 
the  purpose  of  making  some  investments  in  Europe. 
That  corporation  will  come  to  the  Federal  Reserve  Board 
for  permission  to  issue  a  certain  amount  of  obligations 
or  debentures ;  the  Federal  Reserve  Board  acting  as  kind 
of  a  capital  issue  committee,  not  in  any  way  recommend- 
ing the  investment  as  being  safe,  but  merely  recommend- 
ing it  as  being  legitimate  and  regular,  the  investor  to  de- 
cide for  himself  as  to  its  goodness,  will  authorize  that 
issue  to  be  offered  to  the  public.  Then  I  think  the  cor- 
poration will  very  naturally  come  to  the  War  Finance 
Corporation  and  say:  "Here  is  $10,000,000  worth  of  se- 
curities that  we  want  to  place  which  bears  six  or  seven 
per  cent  interest,."  as  the  case  may  be,  "we  would  like 
to  have  you  subscribe  to  this."  I  think  the  policy  of  the 
War  Finance  Corporation  will  be  the  same  as  that  pur- 
sued during  the  war.  It  will  not  subscribe  the  whole 
amount.  It  will  part,  say  twenty  per  cent.  That  will 
have  a  good  moral  effect  because  if  a  corporation  could 
go  before  the  American  investing  public  with  its  own 
obligations  backed  by  securities  which  are  passed  on  by 


284        THE  INTERNATIONAL  TRADE  CONFERENCE 

a  group  of  European  bankers  and  recommended  from 
them  as  being  first-class  in  every  respect,  the  proceeding 
authorized  and  the  issue  allowed  by  the  Federal  Reserve 
Board  and  say  twenty  per  cent  of  the  issue  taken  in  ad- 
vance by  another  organization  of  the  Government,  the 
War  Finance  Corporation,  that  will  show  at  least  that 
the  Government  of  the  United  States  has  some  confidence 
in  the  proposition  and  ought  to  enable  the  bond-selling 
organization  to  place  the  balance  of  it  with  the  people, 
and  in  that  way,  gentlemen,  +he  $1,000,000,000  that  the 
War  Finance  Corporation  may  invest  will  go  a  very  long 
way. 

The  Chairman:  Ladies  and  Gentlemen,  I  am  sure  you 
have  all  been  deeply  interested,  as  I  have  been,  in  listen- 
ing to  this  most  intelligent  and  helpful  address;  and  I 
want  to  thank  Governor  Harding  on  behalf  of  the  Cham- 
ber of  Commerce  and  the  delegations  from  abroad  for 
his  coming  to  us  tonight  from  Washington.  He  has  been 
discussing  this  question  from  the  viewpoint  of  a  banker. 
We  have  been  discussing  this  question  here  not  only  from 
the  viewpoint  of  a  banker,  but  also  from  the  viewpoint 
of  the  merchant.  We  have  gone  further.  We  have  been 
discussing  the  question  as  banker  and  merchant  together 
and  we  have  all  concluded  that  in  it  is  also  included  the 
American  people,  and  I  believe,,  and  I  think  you  will  be- 
lieve that  not  only  the  conservatism  of  the  banker  and 
the  skill  and  shrewdness  of  the  merchant,  but  the  heart 
of  the  American  people  has  got  to  get  into  this  thing. 


Address  of  Hon.  Myron  T.  Herrick, 

Ex- Ambassador  to  France. 

The  Chairman:  It  has  been  a  great  disappointment  to 
us  that  Mr.  Harry  A.  Wheeler  could  not  be  with  us  to- 
night to  address  us  on  this  particular  subject,  the  im- 


THE  INTERNATIONAL  TRADE  CONFERENCE        285 

portance  of  which  was  so  much  impressed  upon  his  heart 
and  in  which  he  was  so  vitally  interested.  We  are  very 
happy  in  having  with  us  tonight  one,  while  not  taking 
his  place,  has  a  place  of  his  own  in  the  hearts  of  all  of 
us.  I  know  I  do  not  need  to  introduce  to  you  the  next 
speaker  who,  because  of  his  great  work  during  his  resi- 
dence abroad,  his  magnificent  representation  of  the  Amer- 
ican people,  has  endeared  himself  not  only  to  the  hearts 
of  all  his  American  friends  and  countrymen,  but  to  those 
in  Great  Britain,  Belgium,  Italy  and  France,  the  Honor- 
able Myron  T.  Herrick,  ex-Ambassador  to  France,,  who 
will  address  you. 

Ladies  and  Gentlemen:  You  might  now  be  going  on  to 
your  comfortable  hotels,  had  I  not  been  apprehended  by 
your  Chairman  as  I  was  quietly  leaving  town. 

I  am  especially  pleased  to  have  the  privilege  of  saying 
a  word  on  the  important  subject  of  industrial  business 
organization.  Knowing  the  financial  chaos  that  exists 
throughout  the  world  we  have  been  extremely  anxious  to 
do  something  to  stabilize  credits  and  to  re-establish  (not 
re-establish  the  credit  system  that  existed  before  the  war, 
because  that  is  now  obsolete),  but  to  recreate  a  system 
that  should  again  restore  and  stabilize  the  economic  sit- 
uation of  the  civilized  world.  That  is  what  you  gentle- 
men from  France,  England,  Italy  and  Belgium  came  here 
to  undertake,  and  how  well  you  have  done  it! 

Your  preliminary  statement  indicates  that  there  is 
something  over  and  above  and  higher  than  financial  con- 
siderations. It  is  conserving  the  fruits  of  this  hard- 
earned  victory  that  cost  so  much  of  blood  and  treasure 
and  all  but  wrecked  civilization.  That  is  the  meaning  of 
it.  And  I  believe  that  when  a  system,  in  the  wisdom  of 
men  who  will  put  not  only  their  business  intellect,  but 
their  patriotism  into  the  solution  of  it  and  have  evolved 
something,  I  believe  that  it  will  appeal  to  the  American 
people's  patriotism  as  did  our  offer  of  Government  bonds 
in  that  crisis. 

Why  did  30,000,000  of  patriotic  Americans  subscribe 


286        THE  INTERNATIONAL  TRADE  CONFERENCE 

to  those  bonds?  Was  it  because  it  paid  them  three  and 
one-half  per  cent,  or  four  per  cent,  or  four  and  one-quar- 
ter per  cent  when  they  could  get  eight  or  ten  per  cent  in 
those  days?  No.  It  was  because  they  knew  that  this 
country  of  ours,  which  we  had  so  long  struggled  to  build 
here  in  this  Western  Hemisphere  was  good  for  nothing 
if  you  failed,  gallant  men  of  Belgium,  France  and  Italy. 
That  is  why  they  did  it.  Our  people  are  going  to  under- 
stand very  soon  now,  as  they  understood  then,  that  if  the 
fruits  of  that  victory  do  not  moulder  on  the  docks,  as 
they  are  in  New  York — if  what  they  have  fought  for  and 
what  they  have  bled  for  is  to  be  conserved — they  have 
got  to  do  something  more  than  just  barely  to  trade  over 
the  bargain  counter  on  these  securities  that  you  offer  us. 
That  is  what  we  want  the  people  of  the  United  States  to 
understand ;  and  it  will  take  very  little  effort  to  have  them 
understand  that  an  international  system  of  credit  is 
necessary.  We  now  know  it  is  just  as  necessary  as  it  was 
to  win  the  war,  and  we  know  now  that  the  war  could  not 
have  been  won  had  not  America  been  there.  She  was 
late,  but  she  was  there  finally.  Now  let  us  profit  by  that, 
and  while  Europe  chafes  and  waits,  and  while  commerce 
is  delayed,  let  us  remember  that  we  were  late  then  and  let 
us  be  on  time  now. 

We  bankers  ask:  "What  collateral  have  you?"  That 
is  an  automatic  question  when  a  loan  is  asked  for :  "What 
collateral  have  you?"  A  great  financier,  one  of  the  great- 
est financiers  that  this  country  has  known,  said  one  time 
in  a  financial  conference :  "I  don't  care  what  kind  of  col- 
lateral a  man  brings  to  my  desk,,  if  he  has  not  got  the 
character  to  back  it  up  I  do  not  want  his  loan."  Mr. 
Morrow,  who  spoke  to  you  last  night,  who  sat  at  the  feet 
of  that  great  financier  and  was  a  worthy  student,  told  you 
the  same  thing.  That  is  axiomatic  now  throughout  the 
banking  world  and  we  understand  perfectly  that  charac- 
ter must  back  loans,  so  let's  inventory  our  collaterals  just 
for  a  moment. 

When  the  fire  of  the  world  fixed  on  little  Beligum  what 
did  she  do?  That  is  the  standard  of  character  which  she 


THE  INTERNATIONAL  TRADE  CONFERENCE        287 

offers  you  as  collateral.  When  France  and  England,  all 
unprepared  and  unbelieving  that  such  a  monstrous  thing 
could  happen,  rose  to  arms  to  meet  this  shock  of  war  and 
triumphed,  did  not  they  create  some  collateral  upon 
which  you  can  base  a  loan  ?  Italy,  the  Italy  of  Garibaldi, 
valiant  Italy,  which  was  allied  to  Germany  in  the  begin- 
ning of  this  war,  but  which,  when  she  understood  Ger- 
many's fell  and  malevolent  purpose,  broke  that  alliance 
and  turned  to  the  cause  of  righteousness,  did  not  she  cre- 
ate a  collateral  that  is  good  enough  for  America?  If  we 
want  to  know  what  a  nation  will  do  in  the  future  we  only 
need  to  ask  what  has  it  done  in  the  past ;  we  need  not  go 
back  over  the  centuries  of  the  history  of  these  great  na- 
tions that  have  made  civilization;  we  need  only  go  back 
over  four  and  one-half  years  of  their  history  to  under- 
stand what  they  will  do  in  the  future.  What  a  nation  has 
done  in  the  last  four  and  one-half  years  is  an  earnest  of 
what  it  will  do  in  the  future.  If  they  were  honorable  and 
met  their  obligations,,  that  is  all  that  is  necessary.  Why 
even  Germany  understands  that. 

Now,  this  deeper  significance  lies  in  the  fact  that  we 
must  quickly  understand  that  the  machinery  has  to  be 
recreated,  it  has  to  be  new,  and  we  love  to  make  new 
machinery.  Why,  the  Federal  Reserve  Board,  so  worthily 
represented  here,  came  in  the  nick  of  time.  It  was  a  new 
order  of  things.  We  have  got  to  create  a  new  order  of 
finance,  but  oh,  what  wonderful  collateral  you  gentlemen 
have  to  give  us !  It  is  splendid,  and  we  have  not  a  doubt 
about  it.  As  Mr.  Harding  said,  each  one  of  us  has  his 
problems.  There  are  many  unspoken  thoughts  in  this 
Convention,  many  forebodings  as  to  the  future,  but  we 
are  a  nation,  as  are  your  nations,  gentlemen,  of  hope  and 
confidence.  Were  there  not  forebodings  in  those  fateful 
days  when  Germany  rushed  Belgium?  Were  there  not 
forebodings  throughout  the  entire  world  ?  It  seemed  then 
inevitable  that  civilization  must  go  down,  that  there  was 
no  hope,  no  chance;  but  the  Allies  marshaled  all  those 
forces  with  something  that  Germany  did  not  have — a 


288        THE  INTERNATIONAL  TRADE  CONFERENCE 

spiritual  power  for  the  right.  The  great,  attacking  horde 
was  not  only  stayed,  but  beaten. 

Now,  out  of  all  this  came  the  belief,  as  so  many  million 
people  did  believe,  that  when  victory  was  declared  the 
millenium  would  come.  Oh,  but  it  has  been  slow  and 
their  nerves  are  on  edge  and  they  are  irritable,  and  the 
whole  world  is  ill-natured.  The  one  great  thing  we  need 
is  patience  and  good  nature.  That  is  a  factor  which  is 
necessary,  and  a  little  more  of  that  good  will  toward  each 
other.  But  those  unspoken  thoughts  that  haunt  us  here 
in  America  where  we  have  never  had  this  Government  of 
ours  assailed.  No  one  has  ever  dared  to  say  that  he 
would  like  to  bring  on  a  revolution  or  to  break  down  this 
country  of  Washington  and  Lincoln;  no  one  has  ever 
dared  to  say  or  speak  those  things  until  lately.  Some 
malevolent  forces  have  misled  labor  in  the  idea  that  it 
must  take  a  certain  course  in  order  to  benefit,  when  any 
course  that  leads  to  destruction  of  this  country  is  against 
the  interests  of  labor. 

Certain  people  would  have  labor  believe  that  its  inter- 
ests would  be  benefited  by  a  certain  direction ;  but  during 
this  war  when  labor  in  England  understood  that  Eng- 
land must  perish  unless  labor  and  capital  coordinated, 
labor  cast  aside  all  its  social  interests  for  this  one  su- 
preme cause.  Then  England  won  because  labor  came 
generously  forward  and  went  into  the  conflict  and  en- 
abled England  to  make  her  great  place  in  history.  She 
did  that  because  labor  was  patriotic.  Labor  is  patriotic 
in  the  United  States  and  in  all  these  other  countries  when 
it  understands.  Labor  in  this  country  will  understand  that 
any  interest  which  is  leading  it  to  strike  down  the  gov- 
ernment that  has  nurtured  and  fostered  it  during  all 
these  years,  is  the  enemy  of  labor;  will  comprehend,  as 
all  the  people  do  comprehend  throughout  this  country, 
that  the  hand  of  treason  shall  not  be  laid  upon  that  flag. 

Cardinal  Mercier  is  in  this  country.  We  saw  him  in 
New  York  and  he  has  been  to  my  home  town  in  Cleve- 
land. It  seemed  to  me  that  he  was  just  about  the  greatest 
ambassador  that  ever  came  across  the  waters,,  because 


THE  INTERNATIONAL  TRADE  CONFERENCE        289 

he  brings  here  at  this  time  that  doctrine  of  peace  and 
good-will  on  earth  and  yet,  at  the  same  time,  underneath 
that  combination  of  delightful  personality  is  a  will  of 
steel  and  an  intelligence  as  broad  as  the  universe.  And 
I  should  like  to  compliment  the  gentlemen  of  Belgium, 
not  only  upon  that  representative,  but  upon  King  Albert. 
His  is  one  head  that  does  not  lie  uneasy  within  the  crown, 
I  assure  you ;  and  to  my  beloved  friends  in  France,  to  tell 
the  truth,  I  came  here  as  much  to  see  them,  Mr.  Chair- 
man, as  anything  else,  because  no  one  could  live  in  France 
and  not  understand  that  their  2,000  years  of  civilized 
living,  their  wonderful  history,  when  they  beat  back  so 
many  times  forces  that  would  have  changed  the  history 
of  the  world,  who  fought  on  so  many  battlefields,  have 
always  had  a  high  conception  of  right — no  one  could  live 
among  those  delightful  people  without  loving  them.  Ana 
my  friends  from  England — I  have  had  a  delightful  time 
with  them.  I  have  been  telling  them,  in  order  to  get  next 
to  them,  that  I  lived  there  150  years  ago  and  enjoyed  it 
very  much.  And  Italy.  Why,  a  part  of  our  town  is 
known  as  Little  Italy.  There  is  always  joy  down  there 
and  I  do  not  know  how  many  celebrations  they  have  a 
year,  but  it  seems  to  me  at  least  every  other  day  they 
have  fireworks. 

So,  gentlemen,  as  you  go  out  through  this  country  you 
will  find  that  we  are  Yankees;  we  trade  close;  we  have 
sometimes  a  cold  exterior,  but  underneath  all  that  I  be- 
lieve, as  a  German  said  in  sorrow  in  1917,  when  he  saw 
that  we  were  going  to  take  up  the  gauntlet  that  they 
threw  down  when  the  submarine  warfare  was  resumed: 
"I  understand  now  that  we  have  made  a  grievous  mistake 
because  the  Americans  are  the  most  idealistic  people  in 
the  world."  You  will  find  that  underneath  our  cold  ex- 
terior, I  assure  you,  warm  hearts,  and  throughout  the 
country  we  shall  welcome  you  in  our  own  peculiar 
fashions,  in  our  provincial  ways,,  but  when  you  go  home 
I  am  sure  somehow  you  will  carry  the  impression  that 
we  love  you  all. 


290        THE  INTERNATIONAL  TRADE  CONFERENCE 

[Note:  For  the  convenience  of  readers  the  reports  of  commit- 
tees are  taken  from  the  order  in  which  they  appear  in  the  stenog- 
rapher's record  and  shown  here,  the  closing  exercises  of  the  Con- 
ference following  them. — EDITOR.] 


Reports  of  Committees. 

PERSONNEL  OF  PROGRAM  COMMITTEE. 

Reports  of  the  Standing  Committees  were  adopted  as 
follows : 

JOHN  H.  FAHEY,  General  Chairman. 
ANDREW  H.  P HELPS,  General  Secretary. 

AMERICAN  COMMITTEE  FOR  BELGIUM. 

ALEXANDER  J.   HEMPHILL,   Chairman,  Guaranty  Trust   Co.,  New 

York. 

JOHN  N.  VAN  DER  VRIES,  Secretary,  Chicago,  111. 
DENNISON,  HENRY  S.,  President,  Dennison  Mfg.  Co.,  New  York. 
TRIPP,  GUY  E.,  Westinghouse  Elec.  &  Mfg.  Co.,  New  York. 
MINER,  EDWARD  G.,  The  Pfaulder  Co.,  Rochester,  N.  Y. 
KELLOGG,  DR.   VERNON,   National   Research   Council,   Washington, 

D.  C. 

GADE,  LIEUT.-COM.  JOHN  A.,  New  York. 
VAN   SCHAICK,   COL.  JOHN,  JR.,  President,   Board  of   Education, 

Washington. 
LAW,  WILLIAM  A.,  President,  First  National  Bank,  Philadelphia, 

Pennsylvania. 

AMERICAN  COMMITTEE  FOR  FRANCE. 

JOSEPH  P.  COTTON,  Chairman,  New  York. 

EMILE  J.  BALYE,  Secretary,  New  York. 

FULLER,  PAUL,  JR.,  Coudert  Brothers,  New  York. 

DAWES,  CHARLES  G.,  Central  Trust  Co.  of  Illinois,  Chicago,  111. 

MCFADDEN,  GEORGE,  Geo.  H.  McFadden  &  Bro.,  Philadelphia,  Pa. 

WILGUS,  COL.  WILLIAM  J.,  New  York. 

MACROBERTS,  GEN.  SAMUEL,  National  City  Bank,  New  York. 

NICHOLS,  DR.  WM.  H.,  General  Chemical  Co.,  New  York. 


THE  INTERNATIONAL  TRADE  CONFERENCE        291 
AMERICAN  COMMITTEE  FOR  GREAT  BRITAIN. 

IRVING  T.  BUSH,  Chairman,  President,  Bush  Terminal  Co.,  New 

York. 

M.  B.  TREZEVANT,  Secretary,  New  York. 
CLARKE,  E.  A.  S.,  President,  Consolidated  Steel  Corporation,  New 

York. 

ARNOLD,  JOHN  J.,  First  National  Bank,  Chicago,  111. 
CRAVATH,  PAUL  D.,  Cravath  &  Henderson,  New  York. 
GREENE,  JEROME  D.,  Lee,  Higginson  &  Co.,  New  York. 
MCCORMICK,  VANCE  C.,  Harrisburg,  Pa. 
POWELL,  FRANCIS  E.,  W.  C.  Tagle,  New  York. 
STONE,  CHARLES  A.,  President,  American  International  Corp.,  New 

York. 

BONBRIGHT,  WILLIAM  P.,  Bonbright  &  Co.,  Inc.,  New  York. 
CARLTON,    NEWCOMB,    President,    Western    Union    Telegraph    Co., 

New  York. 

AMERICAN  COMMITTEE  FOR  ITALY. 

ROBERT  P.  PERKINS,  Chairman;  President,  Hartford  Carpet  Cor- 
poration. 

PAUL  CLAGSTONE,  Secretary,  San  Francisco. 

BAKER,  GEORGE  F.,  JR.,  Vioe-President,  First  National  Bank,  New 
York. 

PATTERSON,  ALBERT  M.,  Patterson  &  Greenough,  New  York. 

HURLEY,  EDWARD  N.,  Chicago,  111. 

WOOLEY,  ROBERT  W.,  Interstate  Commerce  Commission,  Washing- 
ton, D.  C. 

BABST,  EARL  D.,  President,  American  Sugar  Refining  Co.,  New 
York. 

SMYTH,  CALVIN  M.,  President,  Young,  Smyth,  Field  &  Co.,  Phila- 
delphia, Pa. 

MADDOX,  ROBERT  F.,  President,  American  Bankers'  Assn.,  Atlanta, 
Ga. 

MOORE,  DR.  JOHN  BASSETT,  New  York. 


292        THE  INTERNATIONAL  TRADE  CONFERENCE 


COMMITTEE  ON  CREDIT  AND  FINANCE. 

BELGIUM. 
M.  HANKAR. 
M.  JANSSEN. 
M.  VAN  DEN  YEN. 
M.  CANON  LEGRAND. 
M.  NEVE. 
M.  DE  GROOTE. 

FRANCE. 

M.  BARON  DU  MARAIS. 
M.  ANDRE  HOMBERG. 
M.  LOIZEAU. 
M.  MAURICE  BOYER. 
M.  DE  FREMINVILLE. 
M.  PESSON-DIDION. 
M.  ROCHE. 
M.  INGOUF. 

GREAT  BRITAIN. 

SIR  JAMES  HOPE  SIMPSON. 
SIR  ARTHUR  SHIRLEY  BENN. 
MR.  MARSHALL  STEVENS. 
HON.  J.  G.  JENKINS. 
BAILIE  JOHN  KING. 
MR.  FRANK  MOORE. 

ITALY. 

PROF.  B.  ATTOLICO. 

D.  GIDONI. 
G.  FUMMI. 

A.  JACCARINO. 
G.  BlASUTTI. 

I.  MARCHISIO. 

F.  BAVA. 

G.  PEDRAZZINI. 
L.  PERERA. 

L.  SOLARI. 
A.  PEDRINI. 
0.  Riso. 
SIG.  LERRO. 
SIG.  Fusi. 

E.  GERLI. 
R.  SANTINI. 


THE  INTERNATIONAL  TRADE  CONFERENCE        293 
AMERICA. 

JAMES   S.   ALEXANDER,   Chairman;    President,   National   Bank   of 

Commerce  in  New  York. 
GUY  EMERSON,  Vice-Chairman ;  Vice-President,  National  Bank  of 

Commerce  in  New  York. 
FRED.    N.    SHEPHERD,    Secretary,    Chamber   of    Commerce   of   the 

United  States,  Washington,  D.  C. 
M.  B.  TREZEVANT,  Assistant  Secretary,  Chamber  of  Commerce  of 

the  United  States,  Woolworth  Bldg.,  New  York  City. 
JOHN  T.  WEBBER,  Assistant  Secretary,  Chamber  of  Commerce  of 

the  United  States,  Otis  Bldg.,  Chicago,  111. 
AIKEN,  ALFRED  L.,    Pres.,    National    Shawmut    Bank  of  Boston, 

Boston,  Mass. 
ALDER,  T.  P.,  Treasurer,  U.  S.  Steel  Products  Exports  Co.,  New 

York. 

ANDERSON,  FRANK  B.,  President,  Bank  of  California  National 
Association,  San  Francisco,  Cal. 

BEDFORD,  E.  T.,  President,  Corn  Products  Refining  Co.,  New  York. 

BEEBE,  H.  F.,  Export  Manager,  Winchester  Repeating  Arms  Co., 
New  Haven,  Conn. 

BELL,  JAMES  F.,  Vice-President,  Washburn  Crosby  Co.,  Minne- 
apolis, Minn. 

BONBRIGHT,  WM.  P.,  Bonbright  &  Co.,  New  York  City. 

BOUDEN,  J.  E.,  Jr.,  President,  Whitney  Central  National  Bank, 
New  Orleans. 

BROWN,  JAMES,  Brown  Brothers  &  Co.,  New  York  City. 

BROWNE,  L.  R.,  Credit  Manager,  International  Western  Electric 
Co.,  New  York  City. 

BURNFTT,  C.  R.,  President,  National  Association  of  Credit  Men, 
New  York  City. 

BUSH,  IRVING  T.,  President,  Bush  Terminal  Co.,  New  York  City. 

CALWELL,  CHARLES  S.,  President,  Corn  Exchange  Bank,  Phila- 
delphia, Pa. 

ERICKSON,  0.  T.,  Credit  Manager,  Carter's  Ink  Company,  Boston, 
Mass. 

FORBES,  ALLEN  B.,  Harris,  Forbes  &  Co.,  New  York  City. 

GRAHAM,  ALBERT  D.,  President  Union  Trust  Co.,  San  Francisco, 
Cal. 

HELLMAN,  I.  W.,  President  Union  Trust  Co.,  San  Francisco,  Cal. 

HEPBURN,  A.  BARTON,  Chairman  of  the  Advisory  Board,  Chase 
National  Bank,  New  York  City. 

HILL,  Louis  W.,  Chairman,  Board  of  Directors,  First  National 
Bank,  St.  Paul,  Minn. 

HULBERT,  E.  D.,  President,  Merchants  Loan  &  Trust  Co.,  Chicago, 
111. 

JAFFRAY,  C.  T.,  President,  First  and  Security  National  Bank,  Min- 
neapolis, Minn. 


294        THE  INTERNATIONAL  TRADE  CONFERENCE 

KELLEY,  CORNELIUS  F.,  President,  Anaconda  Copper  Mining  Co., 
New  York. 

KRECH,  ALWIN  W.,  President,  Equitable  Trust  Co.,  New  York. 

LANE,  MILLS  B.,  President,  Citizens  &  Southern  Bank,  Savannah, 
Ga. 

LAW,  WILLIAM  A.,  President,  First  National  Bank,  Philadelphia, 
Pa. 

LEE,  GEORGE  C.,  Lee,  Higginson  &  Co.,  Boston,  Mass. 

MCELDOWNEY,  H.  C.,  President,  Union  Trust  Co.,  Pittsburgh,  Pa. 

MADDOX,  ROBERT  F.,  President,  Atlanta  National  Bank,  Atlanta, 
Ga. 

MATHER,  SAMUEL,  Pickands,  Mather  &  Co.,  Cleveland,  O. 

MORROW  DWIGHT  W.,  J.  P.  Morgan  &  Co.,  New  York  City. 

PIERSON,  LEWIS  E.,  Chairman,  Irving  National  Bank,  New  York 
City. 

PROSSER,  SEWARD,  President,  Bankers  Trust  Company,  New  York 
City. 

RAMSDELL,  HARRY  T.,  President,  Manufacturers  &  Traders  Na- 
tional Bank,  Buffalo,  N.  Y. 

REYNOLDS,  ARTHUR,  First  Vice-President,  Continental  &  Commer- 
cial National  Bank,  Chicago,  111. 

RHETT,  R.  GOODWYN,  President,  Peoples  National  Bank,  Charles- 
ton, S.  C. 

ROWE,  W.  S.,  President,  First  National  Bank,  Cincinnati,  Ohio. 

RUE,  LEVI  L.,  President  Philadelphia  National  Bank,  Philadelphia, 
Pa. 

SABIN,  CHARLES  H.,  President,  Guaranty  Trust  Co.,  New  York 
City. 

SCHIFF,  MORTIMER  L.,  Kuhn,  Loeb  &  Company,  New  York  City. 

SHERWIN,  JOHN,  President,  First  National  Bank,  Cleveland,  Ohio. 

STILLMAN,  JAMES  A.,  President,  National  City  Bank,  New  York 
City. 

STOCKTON,  PHILIP,  President,  Old  Colony  Trust  Co.,  Boston,  Mass. 

STRAUSS,  FREDERICK,  J.  &  W.  Seligman  &  Co.,  New  York  City. 

STUART,  H.  L.,  President,  Stuart  &  Co.,  Chicago,  111. 

SWINNEY,  E.  F.,  President,  First  National  Bank,  Kansas  City,  Mo. 

WADE,  FESTUS  J.,  President,  Mercantile  Trust  Co.,  St.  Louis,  Mo. 

WATTS,  F.  O.,  President,  Third  National  Bank,  St.  Louis,  Mo. 

WETMORE,  F.  O.,  President,  First  National  Bank,  Chicago,  111. 

WINSOR,  ROBERT,  Kidder,  Peabody  &  Co.,  Boston,  Mass. 


THE  INTERNATIONAL  TRADE  CONFERENCE        295 


MINUTES  OF  CONFERENCE  WITH  FOREIGN  DELEGATIONS 
INTERNATIONAL  TRADE  CONFERENCE,  ATLANTIC  CITY. 

The  Committee  on  Credit  and  Finance  held  its  confer- 
ences with  the  representatives  appointed  from  the  Brit- 
ish, French,  Belgian  and  Italian  delegations  on  October 
20  to  October  22,  inclusive.  In  general  these  conferences 
were  informal  in  character  and  discussion  of  the  situa- 
tion in  the  respective  countries  was  very  free  and  frank. 
In  furtherance  of  the  fullest  and  frankest  possible  inter- 
change of  views  between  the  American  and  foreign  rep- 
resentatives, it  was  agreed  by  mutual  consent  that  no 
stenographic  record  of  the  proceedings  be  made,  the 
great  object  of  the  conference  being,  not  the  creation  of 
a  record  of  definite  facts,  but  rather  a  starting  point  of 
mutual  understanding  from  which  concrete  action  could 
be  developed. 

OCTOBER  20,  1919 — CONFERENCE  WITH  BRITISH 
DELEGATION. 

The  meeting  with  the  British  delegation  was  called  to 
order  at  2.15  P.  M.  by  James  S.  Alexander,  Chairman. 
The  following  members  of  the  British  Mission  had  been 
appointed  to  confer  with  the  Committee  on  Credit  and 
Finance : 

SIR  ARTHUR  SHIRLEY  BENN,  K.  B.  E.,  M.  P.;  Chairman,  London. 

SIR  JAMES  HOPE  SIMPSON,  Director  and  General  Manager,  Bank 
of  Liverpool. 

MR.  MARSHALL  STEVENS,  M.  P.,  Manchester. 

HON.  J.  G.  JENKINS,  Corbiston,  London;  Member  of  Finance, 
General  Purposes  and  Merchants  Committees,  London  Cham- 
ber of  Commerce;  V.  P.,  British  Producers  Association;  for- 
mer Premier,  South  Australia. 

BAILIE  JOHN  KING,  Chairman,  National  Light  Castings  Asso- 
ciation, Glasgow. 

MR.  FRANK  MOORE,  Eady  &  Murcott  Goode,  Ltd.,  Leicester. 

Sir  James  Hope  Simpson,  introduced  by  Mr.  Alexan- 


296        THE  INTERNATIONAL  TRADE  CONFERENCE 

der,  reviewed  the  financial  situation  of  Great  Britain  and 
pointed  out  the  soundness  of  her  government  and  private 
financial  condition;  and  also  her  international  banking 
situation  due  to  remaining  investments  in  foreign  secu- 
rities and  to  invisible  items  in  the  balance  of  indebted- 
ness, such  as  money  paid  to  Britain  in  the  form  of  ship- 
ping charges,  insurance  premiums,  banking  commissions, 
etc.  He  declared  also  that  labor  conditions  and  indus- 
trial methods  were  improving.  Sir  James  expressed  the 
conviction  that  every  British  business  man  who  asked 
for  credit  would  do  so  having  in  mind  commercial  trans- 
actions on  which  he  could  make  a  profit  and  out  of  the 
proceeds  of  which  he  could  certainly  pay  whatever  was 
advanced.  He  indicated  that  Great  Britain  desired 
simply  the  maintenance  of  existing  business  and  credit 
relationships  with  the  United  States  and  was  not  seeking 
on  her  own  behalf  for  the  creation  of  any  special  or  un- 
usual credit  arrangements. 

OCTOBER  21,  1919 — CONFERENCE  WITH  FRENCH 

DELEGATION. 

The  Committee  on  Credit  and  Finance  held  two  ses- 
sions with  the  French  representatives;  the  first  com- 
mencing at  10  o'clock  and  the  second  at  2.15.  The  fol- 
lowing members  of  the  French  delegation  had  been  ap- 
pointed to  meet  with  the  Committee  on  Credit  and 
Finance : 

M.  EUGENE  SCHNEIDER,  Chairman,  Head  of  Creusot  Iron  Works. 
M.  LE  BARON  DU  MARAIS,  Vice-Chairman  of  Mission,  Director  of 

Credit  Lyonnaise. 

M.  ANDRE  HOMBERG,  Vice-President  of  the  Societe  Generale. 
M.  LOIZEAU,   Engineer,  of  the  Credit  Lyonnais;   Assistant  to  M. 

le   Baron   du   Marais. 
M.  BOYER,  Director  of  American  Services  in  the  Bank  of  Paris; 

Assistant  .General   Secretary. 

M.  DE  FREMINVILLE,  Engineer  at  Schneider  establishment. 
M.   PESSON-DIDION   Mining  Engineer;   Delegate  of  the  Union   of 

Metallurgical  and  Mining  Industries;   Director  of  the   Societe 

Centrale  pour  1'Industries   Electrique. 
M.  ROCHE,  Delegate  of  General  Syndicate  of  Chemical  Products; 

Director  of  the  firm  of  Poulens  Brothers. 

M.   INGOUF. 


THE  INTERNATIONAL  TRADE  CONFERENCE        297 

Mr.  Alexander  introduced  M.  Schneider,  who  reviewed 
briefly  the  financial  situation  of  the  French  Government, 
pointing  out  that  it  was  under  the  necessity  of  advancing 
large  sums  for  the  rehabilitation  of  devastated  regions, 
which  sums  were  expected  to  be  reimbursed  by  Ger- 
many, and  correcting  the  misunderstanding  of  many  per- 
sons in  this  country  that  the  French  people  were  averse 
to  severe  measures  of  taxation. 

M.  Schneider  then  introduced  M.  le  Baron  du  Marais, 
who  made  a  detailed  statement  covering  the  economic  and 
financial  condition  of  France.  He  outlined  the  situation 
with  respect  to  the  output  of  coal,  iron  and  steel,  and 
other  metals,  and  textiles.  He  pointed  out  further  the 
character  of  the  resources  and  production  of  French  col- 
onies in  several  parts  of  the  world  and  then  indicated 
the  progress  which  France  had  already  made  in  rehabili- 
tating devasted  regions. 

After  reviewing  the  French  budget  for  the  fiscal  year, 
Baron  du  Marais  pointed  out  that  what  the  French  need 
is  simply  sufficient  time  to  enable  their  production  and 
consequently  their  exports  to  be  resumed.  For  this  pur- 
pose France  requires  credits  from  foreign  countries  of 
sufficient  amount  to  cover  her  needs  for  raw  materials 
and  for  a  certain  amount  of  foodstuffs,,  and  of  long 
enough  maturity  to  permit  the  processes  of  production 
and  exportation  to  be  resumed. 

Following  Baron  du  Marais'  statement,  the  meeting 
was  opened  to  discussion  and  the  American  representa- 
tives discussed  fully  with  the  French  representatives  the 
financial  situation  of  the  French  Government  and  plans 
for  increasing  taxes  to  cover  expenditures.  There  was 
likewise  a  full  discussion  of  various  methods  by  which 
credits  might  be  extended  under  such  measures  as  the 
Edge  bill.  The  terms  under  which  foreign  securities 
would  be  marketable  in  this  country  were  considered  at 
length. 


298        THE  INTERNATIONAL  TRADE  CONFERENCE 


OCTOBER  22,  1919. — CONFERENCE  WITH  BELGIAN 
DELEGATION. 

The  Belgians  delegated  to  confer  with  the  Committee 
on  Credit  and  Finance  were : 

M.  FLORIMOND  HANKAR,  Chairman,  Director.  National  Bank  of 
Belgium;  Honorary  Director  General,  Savings  Bank  of  Bel- 
gium. 

M.  ALBERT  E.  JANSSEN,  Director,  National  Bank  of  Belgium,  Pro- 
fesor  University  of  Louvain. 

PROFESSOR  PAUL  VAN  DEN  YEN,  University  of  Louvain,  Delegate 
of  Belgian  Minister  of  Finance,  at  Paris  Conference. 

M.  CANON-LEGRAND,  President,  Chamber  of  Commerce,  Mons; 
Construction  Engineer;  Permanent  President,  International 
Congress  of  Chambers  of  Commerce. 

M.  ALBERT  NEVE,  Departmental  Director,  Ougree-Marihaye  Works, 
Liege. 

M.  ALEXANDRE  DE  GROOTE,  Vice-President,  Antwerp  Chamber  of 
Commerce. 

The  meeting  was  called  to  order  at  10  o'clock  by  Mr. 
Alexander.  He  then  introduced  M.  Florimond  Hankar 
who  reviewed  briefly  the  situation  of  the  Belgian  Gov- 
ernment, pointing  out  that  Belgium  was  in  a  strong  posi- 
tion because  all  of  its  war  expenses  had  been  advanced 
by  the  Allies  and  would  be  reimbursed  to  them  by  Ger- 
many, and  further  because  Germany  under  the  terms  of 
the  peace  treaty  was  called  on  to  make  certain  additional 
payments  to  Belgium  in  advance  of  those  made  to  the 
Allies  generally.  In  the  discussion  which  followed,  the 
nature  of  the  obligations  to  be  assumed  by  Germany  on 
behalf  of  Belgium  was  explained  in  detail.  M.  Hankar 
pointed  out  that  the  banks  generally  were  in  sound  con- 
dition and  had  largely  increased  their  capital.  He  fur- 
ther emphasized  the  rapid  progress  which  is  being  made 
in  restoring  normal  industrial  and  mining  production 
and  referred  to  the  satisfactory  labor  situation. 

Agriculture,  M.  Hankar  stated,  is  in  a  very  flourish- 
ing condition  and  while  in  parts  of  the  country,  particu- 
larly that  damaged  by  trench  warfare,  production  had 


THE  INTERNATIONAL  TRADE  CONFERENCE        299 

not  yet  been  restored,  still  a  start  had  been  made  in  this 
direction  and  the  Germans  were  obliged  to  repair  the 
damage  to  the  country.  The  Belgian  delegation  indicated 
that  they  desired  credits  in  this  country  sufficient  to  en- 
able them  to  purchase  raw  material,  especially  cotton, 
and  of  long  enough  maturity  to  permit  of  the  resumption 
of  exports  which  would  furnish  exchange  to  liquidate 
their  indebtedness. 

OCTOBER  22,  1919 — CONFERENCE  WITH  ITALIAN 
DELEGATION. 

The  meeting  with  the  Italian  delegates  was  called  to 
order  at  2 :15  P.  M.  The  members  of  the  Italian  Mission 
appointed  to  confer  with  the  Committee  on  Credit  and 
Finance  were : 

COMMANDER  PROF.  BERNARDO  ATTOLICO. 

COMMANDER  DOMENICO  GIDONI,  Delegate  of  the  Italian  Treasury. 

CHEVALIER  GIOVANNI  FUMMI,  Stock  Broker. 

COMMANDER  DR.  AUGUSTO  JACCARINO,  Representative  of  the  Ban- 
co di  Napoli. 

CHEVALIER  GAETANO  BIASUTTI,  Representative  of  the  Banco  Ital- 
iana  di  Sconto. 

DR.  ILDO  MARCHISIO,  Representative  of  the  Banco  di  Roma. 

CHEVALIER  FELICO  BAVA,  Representative  of  the  Credito  Italiano. 

CHEVALIER  GUIDO  PEDRAZZINI,  Representative  of  the  Banca  Com- 
merciale,  Italiana. 

SIG.  PERERA. 

SIG.  L.   SOLARI. 

SIG.  A.  PEDRINI. 

SIG.  O.  Riso. 

SIG.  LERRO. 

SIG.  Fusi. 

SIG.  E.  GERLI. 

SIG.  R.  SANTINI. 

Professor  Attolico,  introduced  by  Mr.  Alexander,  sum- 
marized briefly  the  Italian  situation,  pointing  out  that 
their  present  needs  arise  out  of  the  suppression  of  trade 
during  the  war,  but  on  the  other  hand  the  transition  from 
war  activities  to  peace  activities  is  comparatively  simple 
in  Italy,  which  is  predominantly  agricultural  rather  than 


300        THE  INTERNATIONAL  TRADE  CONFERENCE 

industrial  in  its  activities.  He  referred  to  the  favorable 
situation  of  Italy  as  a  clearing  center  for  the  movement 
of  goods  between  the  East  and  the  West.  Italy  likewise 
will  benefit  by  the  resumption  of  tourist  trade  which  is 
an  important  item  in  her  economy  and  which  was  cut  off 
during  the  war. 

Professor  Attolico  then  introduced  Commander  Gidoni 
who  discussed  in  greater  detail  the  financial  position  of 
the  Italian  Government  and  the  terms  of  the  forced  loan 
by  which  it  is  proposed  to  secure  the  retirement  of  a  con- 
siderable portion  of  the  floating  indebtedness  and  paper 
currency.  Commander  Gidoni  further  outlined  Italy's  re- 
quirements for  goods  to  be  imported  from  other  coun- 
tries for  the  year  and  explained  the  terms  of  syndicate 
formed  by  the  leading  Italian  banks  to  facilitate  the 
financing  of  these  imports. 

The  meeting  was  then  opened  to  discussion  and  the 
American  and  Italian  representatives  went  over  the  situ- 
ation with  the  greatest  frankness.  The  method  by  which 
the  Italians  propose  to  obtain  foreign  credits  through  the 
banking  syndicate  above  referred  to  was  discussed  thor- 
oughly and  the  financial  condition  of  the  Government  and 
of  the  banks  was  further  reviewed. 

In  general  the  object  of  the  Italian  delegation  was  to 
secure  in  this  country  a  long  term  credit  of  sufficient 
amount  to  provide  for  the  purchase  of  merchandise,  prin- 
cipally raw  materials,  in  the  United  States. 

As  a  result  of  these  conferences  with  the  foreign  dele- 
gations and  as  a  result  of  further  consideration  on  the 
part  of  the  members  of  the  Committee  on  Credit  and 
Finance  of  the  facts  and  conditions  presented,  the  fol- 
lowing report  was  prepared  and  was  submitted  to  the 
open  session  of  the  International  Trade  Conference  on 
Friday,  October  24,  1919,  by  Chairman  Alexander: 

REPORT  OF  COMMITTEE. 

Your  Committee  on  Credit  and  Finance  was  invited  to 
meet  here  to  confer  with  business  and  financial  repre- 
sentatives of  England,  France,  Italy  and  Belgium,  for  a 


THE  INTERNATIONAL  TRADE  CONFERENCE        301 

frank  discussion  of  facts  and  exchange  of  views.  It  was 
hoped  that  a  better  understanding  of  the  needs  involved 
and  of  the  resources  available  to  meet  these  needs  would 
be  reached. 

Your  Committee  began  its  sessions  on  Sunday,  October 
19,,  with  the  purpose  of  developing  the  views  of  the  Amer- 
ican bankers  and  business  men  on  the  Committee  who 
come  from  every  section  of  the  United  States.  This 
group  has  met,  in  turn,  with  the  distinguished  missions 
from  the  nations  represented  at  the  Conference  and  has 
had  the  opportunity  of  hearing  statements  of  extreme 
value  with  regard  to  the  economic,  industrial,  commercial 
and  financial  situation  in  those  countries. 

In  addition  to  this  information  the  Committee  has  been 
advised  to  some  extent  of  the  needs  of  other  nations; 
many  measures  have  been  discussed  informally  which 
have  to  do  with  supplying  the  necessities  of  life  to  the 
stricken  areas  of  Europe.  It  is  not  within  the  authorizt- 
tion  of  the  present  committee  to  discuss  officially  here  the 
countries  not  represented  at  this  Conference. 

The  entire  situation  has  taken  on  a  new  significance 
because  of  the  personal  contact  made  possible  by  the 
presence  of  men  of  such  ability  and  longexperience  in 
international  trade  and  finance. ,  The  spoken  word  is 
always  more  vivid  than  the  written  word.  All  this  ma- 
terial submitted  to  us  will  be  presented  to  the  Chairman 
of  the  Trade  Conference  within  a  few  days.  In  the 
meantime  it  may  be  said  in  general  that,  after  hearing 
all  the  statements  made  here  and  studying  as  far  as 
time  permitted  the  facts  and  opinions  submitted  by  for- 
eign and  American  delegates  to  this  Conference,  your 
Committee  regards  this  situation  not  as  one  of  finance 
purely,  but  rather  as  a  great  world  problem  arising  out 
of  the  interplay  of  social,  economic  and  political  forces 
stirred  into  action  by  the  world  war.  It  must  be  self- 
evident,  therefore,  that  no  single  all-inclusive  formula 
will  solve  it. 

And  yet  we  believe  that  ways  and  means  can  be  found 
to  furnish  what  is  asked  of  us  by  the  countries  which 
have  told  of  their  needs  at  the  Conference.  Of  course, 
until  the  factories  are  again  in  full  operation  and  these 
countries  have  thus  substantially  decreed  their  im- 
ports and  increased  their  exports,  it  is  clear  that  they 
must  not  be  expected  to  make  immediate  payment  in  the 
United  States  for  the  materials  they  need. 

The  missions  in  turn  have  emphasized  the  ability  and 
determination  of  their  nations  to  meet  their  obligations 


302        THE  INTERNATIONAL  TRADE  CONFERENCE 

as  they  have  always  met  them  n  the  past.  They  have 
stated  that  they  expect  any  loans  negotiated  here  to  be  on 
terms  and  conditions  that  will  meet  our  domestic  situa- 
tion. The  British  Mission  has  not  asked  for  any  special 
aid  for  their  country.  The  need  of  these  countries  which 
do  desire  aid  of  us  at  this  time  is  in  the  nature  of  assist- 
ance only  until  the  peak  of  their  reconstruction  period  is 
passed.  The  length  of  that  period  will  vary  in  different 
countries  in  proportion  to  the  extent  of  the  destruction 
of  war  and  also  in  proportion  to  the  speed  with  which 
their  internal  economic  machinery  can  be  fully  set  to 
work.  The  foreign  missions  point  out  further  that  the 
duration  of  their  period  of  trial  will  depend  to  some  ex- 
tent upon  the  speed  with  which  our  aid  is  rendered. 
They  are  already  at  work.  But  without  help  from  the 
oueside,  they  cannot  approach  a  maximum  of  industrial 
activity  for  a  long  period. 

How  are  these  needs  to  be  met?  European  conditions 
are  such  that  to  a  large  extent  our  exports  must  be 
made  on  long-time  credits.  We  find  evidence  of  belief 
among  Amreican  exportrs  that  the  banks  should  pro- 
vide funds  for  financing  of  our  exports  to  Europe  in 
such  a  manner  as  to  place  upon  the  banks  the  burden  of 
the  transaction. 

The  banks  are  eager  to  help.  The  difficulty  is  that 
commercial  banks,  as  custodians  of  funds,  under  obli- 
gation to  repay  deposits  on  demand,  are  prevented  both 
by  law  and  by  sound  business  practice  from  tying  up 
their  assets  in  long-time  loans.  We  find  this  view 
understood  and  confirmed  by  the  distinguished  bankers 
among  our  European  guests.  American  banks  are  today 
functioning  normally  in  the  financing  of  a  substantial 
part  of  our  foreign  trade.  To  the  extent  that  what  we 
export  is  balanced  by  what  we  import,  banks  can  very 
well  make  the  temporary  advances  required.  But  the 
problem  of  financing  the  excess  of  our  exports  over  our 
imports,  the  problem  of  supplying  the  long-term  credits 
to  cover  the  balance  of  trade,  is  not  one  for  the  banks 
along.  Neither  can  the  banks  and  the  merchants  solve 
it  alone,  because  the  extent  to  which  merchants  and  pro- 
ducers can  properly  tie  up  their  working  capital  in  long- 
time advances  to  foreign  customers  is  limited. 

To  the  extent  that  long-time  credits  are  required, 
therefore,  it  is  clear  that  special  machinery  must  be  set 
up  and  that,  while  the  commercial  banker  will  have  an 
important  role  to  play,  a  large  responsibility  must  rest 
with  other  elements  in  the  population,  notably  the  in- 


THE  INTERNATIONAL  TRADE  CONFERENCE        303 

vestment  banker,  the  exporter,  the  producer  of  goods  for 
export  and,  most  important  of  all,  the  American  investor. 

To  meet  the  problems  of  long-time  commercial  credits 
your  Committee  believes  that  organizations  of  the  type 
contemplated  in  pending  legislation  constitute  a  valuable 
part  of  the  new  machinery  needed  to  meet  the  present 
emergency.  We  have  discussed  at  the  Conferenc  the 
possibilities  of  corporations  formed  under  the  provisions 
of  the  Edge  Bill,  the  principles  of  which  have  been  en- 
ciation  and  other  influential  organizations.  We  recom- 
dorsed  by  a  committee  of  the  American  Bankers'  Asso- 
mend  that  steps  be  taken  to  expedite  the  speedy  passage 
of  that  legislation.  We  have  given  study  also  to  the 
powers  of  the  War  Finance  Corporation  as  a  helpful 
agency  in  the  present  situation.  We  believe  further  care- 
ful study  should  be  given  to  both  these  agencies  with  a 
view  to  bringing  about  not  government  initiative  in  this 
work,  but  rather  the  establishment  of  a  cooperative  re- 
lationship which  will  give  help  and  encouragement  to 
private  initiative  and  increase  the  broadest  confidence 
on  the  part  of  the  public  as  a  whole  in  the  credit  ma- 
chinery to  be  set  up. 

It  should  be  stated  again  that  no  corporation  which 
may  be  set  up  can  take  the  place  of  individual  ingenuity 
and  the  wide  variety  of  effort  and  skill  on  the  part  of 
business  men  and  bankers,  working  out  in  detail  with 
business  men  and  bankers  in  Europe,  specific  trans- 
actions. Some  of  these  may  be  individually  small.  But 
the  success  of  one  will  lead  rapidly  to  the  development  of 
others,  until  in  the  aggregate  the  business  done  will  be 
large.  A  return  of  this  normal  intercourse,  we  believe, 
is  the  ultimate  objective  desired  on  both  sides  of  the 
water  and  should  be  constantly  kept  in  mind  and  en- 
couraged even  while  we  are  devoting  ourselves  so 
earnestly  to  providing  unusual  and  temporary  measures 
to  meet  emergency  needs. 

It  is  in  the  attitude  that  your  Committee  has  ap- 
proached the  formation  of  corporations  of  substantial 
size,  under  provisions  similar  to  those  in  the  Edge  Bill. 
An  organization  with  ample  capital  with  facilities  to  ob- 
tain full  credit  information  abroad,  and  with  a  person- 
nel which  will  insure  an  unquestioned  standing  at  home 
and  abroad  appears  to  be,  in  the  estimation  of  your  Com- 
mittee, an  expedient  well  worth  support  at  this  time. 

When  such  a  corporation  is  established  and  is  ready 
to  issue  its  debentures,  it  is  our  belief  that  the  securities 
to  be  offered  to  the  American  public  should  stand  on 


304        THE  INTERNATIONAL  TRADE  CONFERENCE 

their  merit  as  an  investment.  We  feel  that  if  a  security 
is  made  available  through  the  established  investment 
selling  machinery  of  the  United  States,  on  a  business 
basis,  the  American  public  will  demonstrate  that  they 
have  a  deep  interest  in  the  grounds  of  friendship  in  the 
splendid  peoples  who  bore  the  greatest  share  of  the  war, 
and  with  whom  our  soldiers  fought  side  by  side  until  vic- 
tory was  won.  Nor  will  our  people  be  unminduful  of  the 
fact  that  men,  women  and  children  in  some  sections  of 
Europe  will  die  of  disease  and  starvation  unless  help  is 
speedily  forthcoming  from  us.  And,  finally,  we  believe 
the  investing  public  realizes  that  the  world  is  suffering 
from  the  contagion  of  social  unrest  and  radicalism,  breed- 
ing a  disregard  for  law  .and  order  which  endangers  the 
very  existence  of  democratic  institutions.  It  is  to  our 
interest  to  aid  in  re-esttblishing  law  and  order  every- 
where. 

Your  Committee  is  deeply  impressed  with  the  neces- 
sity of  action  which  will  meet  as  quickly  as  possible  both 
the  desires  of  our  foreign  friends  and  the  wishes  of  our 
own  people.  There  is  no  lack  of  desire  to  help.  There  is 
no  lack  of  vision  as  to  the  deep  and  far-reaching  signifi- 
cance of  the  problem,  not  only  from  the  point  of  view  of 
America,  but  from  the  point  of  view  of  the  world.  But 
your  Committee  has  found  the  utmost  diversity  of  judg- 
ment and  opinion  among  thoughtful  men  of  wide  experi- 
ence in  these  matters  as  to  the  proper  measures  to  be 
taken.  And  this  is  not  unnatural.  The  world  situation 
today  presents  the  greatest  financial  problem  of  history. 
Never  in  peace  or  war  has  there  been  a  situation  involv- 
ing on  the  one  hand  such  a  variety  of  widely  divergent 
requirements,  and  on  the  other  hand  such  a  complication 
of  difficulties  in  the  way  of  meeting  those  requirements 
promptly  and  soundly. 

And  yet  with  the  very  difficulty  of  the  problem  there 
goes  a  challenge  to  the  skill,  the  ingenuity  and  the  public 
spirit  of  America.  Business  men  and  bankers  can  meet 
this  situation  if  they  have  the  active  support  of  the  na- 
tion, of  labor,  of  the  farmers,  of  the  professional  men  and 
women,  and  of  the  press,,  and  the  sympathetic  coopera- 
tion of  public  officials.  It  is  a  matter  for  study,  for  wise 
counsel,  and  for  action  which  shall  move  forward  in  a 
sure  and  conclusive  way  because  it  is  a  right  way. 

Looking  to  the  future,  it  is  a  subject  which  must  be  ap- 
proached so  as  to  meet  not  only  the  urgent  needs  of  the 
moment  but  also  to  lay  the  foundations  for  broad,  accur- 
ate and  world-embracing  knowledge,  on  the  part  of 


THE  INTERNATIONAL  TRADE  CONFERENCE        305 

Americans,  of  foreign  investment.  Our  American  neces- 
sities have  very  properly  occupied  our  minds  during  the 
few  crowded  generations  in  which  we  were  building  a 
great  nation  across  a  wilderness  of  forests  and  prairies. 
But  increasingly  in  the  future,  business  and  finance  must 
be  regarded  from  the  point  of  view  of  the  rights  and  re- 
sponsibilities of  all  the  peoples  of  the  world.  Economic 
isolation  is  today  a  contradiction  in  terms.  If  we  do  not 
now  prepare  to  do  our  share  in  this  situation,  we  shall 
most  surely  find  in  another  generation,  when  the  world 
has  resumed  its  orderly  course  of  business,  that  America 
has  not  held  her  proper  po  sition  in  world  affairs. 

Your  Committee  believes  that  the  understanding  in  this 
country  of  this  situation  has  been  distinctly  advanced  by 
the  work  of  the  present  Conference. 

This  Committee  has  finished  its  work.  But  the  great 
problems  presented  require  continuous  study  and  coor- 
dination. Therefore,  your  Committee  recommends  that  a 
new  committee  shall  immediately  be  appointed  by  the 
Chamber  of  Commerce  of  the  United  States  to  carry  on 
the  work  initiated  at  this  Conference,  and  to  put  to  prac- 
tical use  the  material  accumulated  here.  It  is  felt  that 
the  new  committee  should  represent  the  responsibility  of 
the  entire  country  in  meeting  this  national  emergency. 
It  should  be  so  constituted,  either  in  its  full  membership, 
or  through  a  sub-committee  as  to  be  able  to  devote  at  once 
a  substantial  amount  of  time  to  the  work  in  hand,  to  con- 
sult with  all  the  interests  involved,  and  to  keep  at  the 
job  until  it  is  finished.  Members  of  your  present  Com- 
mittee on  Credit  and  Finance  are  prepared  to  join  with 
this  new  committee  if  desired.  We  believe  that  your  new 
committee  will  receive  the  active  cooperation  of  the 
country,  and  that  it  can  proceed  to  the  actual  definition 
and  effective  working  operation  of  the  practical  measures 
necessary. 

JAMES  S.  ALEXANDER,  Chairman. 


306        THE  INTERNATIONAL  TRADE  CONFERENCE 
COMMITTEE  ON  CHEMICALS. 
FRANCE. 

M.  ROCHE.  M.  INGOUF. 

M.  DE  PELLERIN  DE  LA  TOUCHE.  M.  DE  FREMINVILLE. 

M.  PONCET.  M.  PESSON-DIDION. 

M.  PARMENTIER. 

ITALY. 

F.  QUARTIERI.  A.  ANZANI. 

E.  BARONI.  O.  ROSSATI. 

P.  G.  LAZZERINI. 

AMERICA. 

CHARLES  H.  MACDOWELL,  Chairman, 
President,  Armour  Fertilizer  Works,  Chicago,  111. 

E.  T.  CONNOLLY,  Vice-Chairman  and   Secretary, 

Acting  Secretary,  Manufacturing  Chemists  Association, 

Boston,  Mass. 

ALFRED  P.  PERKINS,  Assistant  Secretary, 
Chamber  of  Commerce  of  the  United  States, 
Woolworth  Bldg.,  New  York  City. 

BOWKER,  HORACE,  Secretary,  American  Agricultural  Chemical  Co., 
New  York  City;  President,  Chemical  Alliance,  New  York  City. 

BRUNKER,  ALBERT  R.,  President,  Liquid  Carbonic  Company,  Chi- 
cago, 111. 

CHASE,  M.  F.,  Consulting  Chemical  Engineer,  Leonard  Construc- 
tion Co.,  New  York  City. 

CHILDS,  WILLIAM  HAMLIN,  President,  The  Barrett  Co.,  New  York 
City. 

CORNWELL,  WM.  R.,  Secretary,  American  Dyes  Institute,  New 
York  City. 

Dow,  H.  H.,  General  Manager,  Dow  Chemical  Company,  Midland, 
Michigan. 

GARVAN,  FRANCIS  P.,  Alien  Property  Custodian,  Washington,  D.  C. 

GRASSELLI,  E.  R.,  Grasselli  Chemical  Co.,  Cleveland,  Ohio. 

HANDY,  H.  H.  S.,  Vice-President,  Semet-Solvay  Co.,  Syracuse, 
New  York. 

HOWARD,  HENRY,  Vice-President,  Merrimac  Chemical  Co.,  Boston, 
Massachusetts. 

MILLER,  C.  WILBUR,  President,  Davison  Chemical  Company,  Bal- 
timore, Md. 

PENNOCK,  J.  D.,  Solvay  Process  Company,  Syracuse,  N.  Y. 


THE  INTERNATIONAL  TRADE  CONFERENCE        307 

REESE,  DR.  C.  L.,  E.  I.  DuPont  de  Nemours  &  Co.,  Wilmington,  Del. 

ROSENGARTEN,  A.  G.,  Powers-Weightman-Rosengarten  Co.,  Phila- 
delphia, Pa. 

SERGEANT,  E.  M.,  Second  Vice-President,  Niagara  Alkali  Co., 
Niagara  Falls,  N.  Y. 

TAYLOR,  DR.  ALONZO  A.,  University  of  Pennsylvania,  Philadelphia, 
Pennsylvania. 

WIGGLESWORTH,  HENRY,  General  Chemical  Company,  New  York 
City. 


REPORT  OF  CHEMICALS  COMMITTEE  MEETING  WITH 
FRENCH  DELEGATES. 

The  American  Chemicals  Committee  met  with  the 
French  Chemicals  Mission  on  Monday,  October  20th,  at 
8.15  P.  M.,  in  Room  131,,  Hotel  Traymore,  Atlantic  City, 
New  Jersey. 

The  following  were  present : 

FRANCE. 

M.  ROCHE  M.   INGOUF 

M.  DE  PELLERIN  DE  LA  TOUCHE  M.  DE  FREMINVILLE 

M.     PONCET  M.    PESSON-DlDION 

M.  PARMENTIER 

AMERICA. 

CHARLES  H.  MACDOWELL,  Chair-  H.  H.   S.  HANDY 

man.  HENRY  HOWARD 

EUGENE     T.     CONNOLLY,      Vice-  C.  WILBUR  MILLER 

Chairman    and    Secretary.  J.   D.  PENNOCK 

ALFRED    P.    PERKINS,     Assistant  DR.  C.  L.  REESE 

Secretary.  A.  G.  ROSENGARTEN 

HORACE  BOWKER  E.  M.  SERGEANT 

H.  H.  Dow  HENRY  WIGGLESWORTH 

E.  R.  GRASSELLI 

Mr.  MacDowell  opened  the  meeting  by  welcoming  the 
French  delegates.  He  referred  particularly  to  the  val- 
uable contributions  made  by  the  French  scientists  in  the 
development  of  the  chemical  industry  and  their  splendid 
achievements  along  the  lines  of  pure  science.  He  stated 
that  the  chemical  industry  was  so  diversified  and  cov- 


308        THE  INTERNATIONAL  TRADE  CONFERENCE 

ered  so  broad  a  field  and  that  chemical  products  were 
raw  materials  in  the  making  of  so  many  finished  products 
and  contributed  so  largely  to  their  quality  and  value  that 
it  was  difficult  to  outline  any  program  for  special  discus- 
sion ;  that  at  the  moment  the  dyestuff s  industry  was  much 
to  the  front  and  that  each  of  the  Allied  countries  was 
studying  the  further  development  of  this  industry  with 
the  idea  of  making  it  as  complete  and  self-supporting  as 
possible;  that  generally  speaking,  heavy  chemicals  were 
consumed  at  home  and  that  under  ordinary  circumstances 
there  would  not  be  much  opportunity  for  the  exchange  of 
heavy  chemicals  between  the  United  States  and  France; 
that  if  certain  agricultural  and  heavy  chemicals  could  be 
spared  from  the  United  States  and  shipping  space  se- 
cured that  he  felt  France  could  advantageously  use  these 
materials  in  preparation  for  the  coming  Spring's  plant- 
ing; that  unfortunately  strikes  and  other  circumstances 
made  it  unlikely  that  any  large  tonnage  could  be  spared 
from  the  United  States ;  that  the  American  chemical  man- 
ufacturers represented  by  the  delegation  present  were 
greatly  privileged  in  having  the  opportunity  of  meeting 
the  French  delegates  and  in  ascertaining  from  them 
just  what  help  it  could  be  to  the  French  industry  either 
in  the  way  of  purchases  from  them  or  sales  to  them  of 
needed  product ;  that  the  rather  distressing  coal  outlook  in 
France  for  the  immediate  future  might  restrict  manu- 
facture of  some  heavy  chemicals  in  France,  which  short- 
age could  in  part  be  supplied  by  United  States  manufac- 
turers. 

M.  Roche,  speaking  for  the  French  representatives,  ad- 
vised the  meeting  that  before  the  war  France  had  pro- 
duced a  large  supply  of  heavy  chemicals  and  a  suf- 
ficiently large  supply  of  fine  chemicals,  and  had  exported 
caustic  soda  and  potash,  but  that  during  the  war  the 
manufacture  of  fine  chemicals  naturally  fell  off.  He 
pointed  out  that  the  United  States  was  naturally  in  a 
better  position  than  France,  two  of  the  chief  reasons 
being  that  she  had  wisely  kept  her  chemists  at  home  and 


THE  INTERNATIONAL  TRADE  CONFERENCE        309 

in  the  factories  during  the  war  and  had  entered  the  war 
two  years  later  than  France. 

He  stated  that  much  preparatory  work  is  now  being 
done  in  France  in  the  manufacture  of  dyes  and  that  two 
large  concerns  are  active  in  this  work,  but  that  the  estab- 
lishment of  the  dye  industry  which  is  so  essential  to  a 
country,  especially  from  a  military  point  of  view,  will 
naturally  take  quite  a  long  time.  He  raised  the  question 
as  to  whether  the  United  States  chemical  interests  and 
French  chemical  interests  could  not  enter  into  some  sort 
of  arrangement  for  the  sale  of  chemical  products  through- 
out Europe. 

He  stated  that  the  labor  conditions  had  been  critical  up 
to  May;  that  the  spirit  of  the  discharged  men  was  good, 
although  they  were  physically  tired,  and  that  the  com- 
manding men  also  were  tired;  that  their  strikes  were 
light  and  not  especially  dangerous.  He  was  rather  opti- 
mistic as  to  the  future. 

In  regard  to  the  sale  of  certain  United  States  chem- 
ical products,  he  suggested  that  it  would  be  beneficial  to 
France  if  the  American  manufacturers  would  sell  such 
products  as  they  wished  to  sell  in  France  directly  to  such 
concerns  in  France  as  manufacture  similar  products,  in- 
stead of  selling  them  on  the  open  market.  He  added  that 
this  might  be  done  in  case  of  dyes  and  Pharmaceuticals 
by  private  agreement.  This  he  thought  would  lessen  the 
competition  which  the  French  manufacturer  would  other- 
wise be  subjected  to,  and  would  enable  the  French  manu- 
facturer to  re-establish  himself,  although,,  by  way  of  sug- 
gestion he  said  that  any  such  agreements  should  be  not 
for  a  few  years,  but  for  longer  periods. 

It  was  stated  that  France  might  desire  to  import  a 
certain  amount  of  wood  distillates  from  the  United 
States,  and  Mr.  MacDowell  remarked  that  in  such  an 
event  the  Committee  would  put  the  French  concerns  in 
touch  with  the  American  concerns  which  would  sell  these 
products. 

M.  Roche  stated  that  the  most  important  chemical  ex- 
port that  could  be  offered  by  France  was  potash  from  the 


310        THE  INTERNATIONAL  TRADE  CONFERENCE 

Alsatian  mines,  that  they  were  prepared  to  ship  mine 
run  potash  and  a  limited  quantity  of  the  80%  chloride; 
that  it  was  figured  they  should  be  able  to  spare,  over  and 
above  their  own  requirements,  some  50,000  tons  K20  for 
shipment  over  the  winter  and  spring  months  and  they 
would  like  to  see  the  United  States  purchase  this  ma- 
terial; that  the  condition  of  the  mines  was  rapidly  im- 
proving as  machinery  was  being  put  in  shape  and  as 
labor  was  trained,  and  that  they  hoped  within  two  or 
three  years  to  be  able  to  take  care  of  not  only  their  own 
but  general  Allied  requirements. 

The  meeting  was  advised  that  the  development  of  the 
alkali  and  caustic  soda  industry  in  the  United  States 
during  the  war  had  been  extremely  rapid;  that  the  pro- 
duction in  1919  would  be  100%  greater  than  the  produc- 
tion in  1914 ;  and  that  five  American  plants  could  produce 
enough  for  the  entire  world. 

It  was  stated  that,  as  far  as  alkalis  are  concerned,  it  is 
probable  that  France  can  take  care  of  herself  in  regard 
to  this  particular  production. 

It  was  suggested  that  France  would  probably  need 
some  sulphate  of  ammonia  at  once;  that  the  production 
of  sulphate  of  ammonia,  of  course,  would  be  dependent 
upon  the  coke  ovens,  and,  in  turn,  the  coke  ovens  would 
be  dependent  upon  the  need  of  the  steel  industry  for 
coke. 

The  meeting  then  developed  into  a  general  discussion 
of  the  situation.  The  various  members  of  the  American 
committee  were  introduced  and  told  what  products  their 
respective  companies  were  manufacturing.  One  member 
of  the  American  Committee  stated  that  his  company 
would  buy  every  bit  of  potash  that  France  can  sell  and 
deliver  to  this  country.  He  added  that,  of  course,  he 
would  be  interested  in  selling  his  products  to  the  French, 
but  what  he  was  especially  anxious  to  do  was  to  buy  the 
potash  from  France. 

In  answer  to  the  question  as  to  what  products  France 
would  probably  be  in  a  position  to  export,  M.  Roche  said 
that  France  probably  would  be  able  to  export  some  wood 


THE  INTERNATIONAL  TRADE  CONFERENCE        311 

extracts,  bauxite,  synthetic  products,  oxide  of  antimony, 
and  some  perfumes,  but  that  the  manufacture  of  perfumes 
at  present  was  difficult  because  of  the  high  taxes. 

M.  Roche  raised  the  question  as  to  the  importation  of 
certain  products  into  this  country  because  of  the  patents 
which  are  now  held  by  the  Chemical  Foundations,  Inc. 
He  was  advised  that  if  there  were  any  difficulties  they 
could  probably  be  worked  out  to  France's  satisfaction. 

Mr.  MacDowell  suggested  that  a  study  could  be  made 
of  the  question  of  standardization  and  uniformity  of 
chemical  products,  contracts  and  terms.  The  meeting 
discussed  this  matter  for  a  short  while. 

The  Conference  with  the  French  Chemical  Mission  may 
be  summed  up  as  follows : 

The  Conference  resulted  in  an  interesting  discussion 
of  the  present  conditions  of  the  French  and  American 
chemical  industry,  but  it  developed  that  there  did  not 
seem  to  be  any  special  way  in  which  the  United  States 
can  materially  help  France,  except  in  so  far  as  this  coun- 
try will  take  potash  from  the  Alsatian  mines,  and  it  was 
indicated  that  this  country  will,  for  a  time,  take  all  the 
potash  which  Alsace  can  produce  above  the  requirements 
of  France,  and  for  which  France  can  obtain  shipping 
facilities  for  delivery  here. 

Arrangements  were  made  whereby  the  French  dele- 
gates may  interview  the  members  of  the  American  Com- 
mittee and  others  interested  in  chemical  products  in  their 
offices  in  order  to  take  up  any  business  propositions  that 
the  French  delegates  may  have  in  mind. 

Invitations  were  also  extended  to  the  delegates  to  visit 
many  of  the  American  chemical  plants. 


REPORT  OF  CHEMICALS  COMMITTEE  MEETING  WITH 
ITALIAN  DELEGATES. 

The  American  Chemicals  Committee  met  with  the  Ital- 
ian Chemical  Mission  on  Tuesday,  October  21,  at  2:15 


312        THE  INTERNATIONAL  TRADE  CONFERENCE 

o'clock  P.  M.,  in  Room  131,  Hotel  Traymore,  Atlantic  City, 
New  Jersey. 

The  following  were  present : 

ITALY. 

F.  QUARTIERI  A.   ANZANI 

E.  BARONI  O.  ROSSATI 

P.  G.  LAZZERINI 

AMERICA. 

CHARLES  H.  MACDOWELL  Chair-  H.  H.  S.  HANDY 

man.  HENRY  HOWARD 

EUGENE     T.     CONNOLLY,     Vice-  C.  WILBUR  MILLER 

Chairman   and   Secretary  J.  D.  PENNOCK 

ALFRED    P.    PERKINS,    Assistant  DR.  C.  L.  REESE 

Secretary.  A.  G.  ROSENGARTEN 

HORACE  BOWKER  E.  M.  SERGEANT 

H.  H.  Dow  HENRY   WIGGLESWORTH 

E.  R.  GRASSELLI 

Mr.  MacDowell  called  to  the  attention  of  the  meeting 
the  skill  of  the  Italians  along  scientific  engineering  and 
chemical  lines,,  and  to  the  very  complete  and  large  chem- 
ical and  industrial  plants  in  northern  Italy.  He  referred 
to  the  general  increase  in  chemical  manufacture  in  the 
different  Allied  countries  coming  as  a  result  of  the  war 
and  stated  that  America  had  surplus  manufacturing 
capacity  for  certain  products  and  was  increasing  her  ex- 
ports; that,  in  the  development  of  the  chemical  indus- 
tries of  Allied  countries,  export  markets  will  naturally 
be  sought  and  that  there  will  be  strong  competition  be- 
tween the  different  Allied  countries;  that  this  competi- 
tion should  be  carried  on  in  a  friendly  way  and  that  each 
country's  chemical  manufacturers  should  aim  to  supple- 
ment their  own  lines  with  the  products  of  other  Allied 
countries  in  world's  merchandise  as  far  as  it  was  possible 
to  do  so.  He  further  stated  that  the  American  chemical 
industry  would  be  interested  in  ascertaining  in  what  ways 
it  might  be  able  to  help  Italy  and  in  what  way  it  could 
benefit  from  Italy ;  that  in  many  respects  Italy  possessed 


THE  INTERNATIONAL  TRADE  CONFERENCE        313 

strategic  advantages  in  the  development  of  her  chem- 
ical and  other  industries  as  far  as  the  Mediterranean,  the 
near  East,  and  eastern  trade  was  concerned;  that  she 
had  abundant  water  power  which  could  be  largely  de- 
veloped ;  that  she  was  well  located  for  the  distribution  of 
products  made;  that  her  traders  were  familiar  with  the 
needs  and  peculiarities  of  the  consumers  through  busi- 
ness connections  already  established.  He  said  that  there 
was  reason  to  believe  that  in  some  branches  of  chemistry 
the  manufacturers  of  the  United  States  and  Italy  could 
find  it  mutually  profitable  to  work  together  and  that  in- 
vestments of  United  States  capital  in  Italy  might  prove 
of  mutual  advantage  and  that  he  thought  United  States 
manufacturers  would  seriously  consider  making  such 
investments. 

F.  Quartieri,  in  reply,  spoke  in  substance  as  follows : 

Italy  has  devoted  herself  very  strenuously  of  late  to  the 
development  of  chemical  manufacturing  industries  at 
home.  One  valid  incentive  has  been  the  fact  that  the  raw 
material  requisite  for  this  branch  of  commerce  is  not 
a  very  important  item,  and  the  processes  of  transforma- 
tion from  war  industries  have  been  most  admirably  car- 
ried out  by  our  workers,  and  by  the  highly  skilled  tech- 
nical staffs  which  Italy  has  at  her  disposal. 

In  figuring  out  these  transformation  expenses — which 
are  infinitely  less  costly  in  Italy  than  in  any  other  coun- 
try— we  feel  confident  that  the  finished  article  will  work 
out  cheaper  in  Italy  than  elsewhere.  It  is  quite  evident 
that,  in  a  commercial  contest  in  this  field,  America  with 
her  immense  resources,  would  be  in  a  position  to  over- 
come all  forms  of  European  competition — but  only  on 
condition  that  she  was  prepared  to  lose  rather  than  gain 
over  the  business. 

The  Italian  Mission  is  of  the  opinion  that  the  most 
advantageous  course  for  both  industries  would  be  that 
American  capital  should  interest  itself  in  the  Italian 
chemical  manufacturing  industry,  in  order  that  we  may, 
in  unison,  take  the  place  of  the  once  predominant  Cen- 
tral Powers  in  the  supply  of  drugs  and  chemical  produce 


314        THE  INTERNATIONAL  TRADE  CONFERENCE 

to  the  countries  of  the  Mediterranean  Basin  and  Eastern 
Europe. 

The  meeting  then  discussed  the  question  of  investing 
American  capital  in  Italian  chemical  enterprises.  It  was 
pointed  out  that  the  position  of  the  Italian  chemical  in- 
dustry was  such  that  it  must  have  assistance  from  out- 
side, that  this  help  can  best  be  obtained  from  two  coun- 
tries, United  States  and  Germany,  and  that  the  Italians 
wished  to  get  help  from  the  United  States. 

It  was  further  stated  that  the  Italian  industry  would 
wish  American  capital,  some  American  raw  materials, 
American  shipping  and  American  chemical  experience. 
The  plan  that  the  Italian  industry  seemed  to  have  in  mind 
was  a  combination  of  American  and  Italian  interests  for 
manufacture,  sale  and  the  exportation  of  drugs  and  other 
chemical  products  to  certain  European  countries,  as  well 
as  their  distribution  in  Italy. 

The  question  was  raised  as  to  just  what  interests  in 
Italy  the  Germans  still  have.  The  meeting  was  advised 
that  all  the  property  which  had  been  formerly  owned  by 
the  Germans  had  been  confiscated  by  the  Italian  govern- 
ment and  liquidated,  and  was  no  longer  owned  by  Ger- 
man interests,  but  that  the  German-owned  Italian  chem- 
ical patents  would  be  restored  to  the  Germans  six  months 
after  the  Treaty  of  Peace,  and  that  royalties  would  have 
to  be  paid  to  the  Germans  for  the  use  of  these  patents, 
but  that  the  amount  of  these  royalties  could  be  regulated 
by  the  Italian  government. 

The  information  was  given  that  Italy  had  developed 
her  water  powers  to  the  extent  of  1,500,000  electric  horse 
power  and  had  reserves  which  could  easily  be  developed 
to  total  in  excess  of  five  million  horse  power;  that  de- 
velopment of  the  water  power  would  relieve  the  coal  sit- 
uation and  that  it  was  a  splendid  foundation  on  which  to 
build  industry;  that  the  plan  was  to  tie  in  the  northern 
water  powers  with  those  developed  more  to  the  south  of 
Italy,  so  that  there  would  be  an  all-year-round  production 
of  power. 

In  regard  to  Italian  tariffs,  the  statement  was  made 


THE  INTERNATIONAL  TRADE  CONFERENCE        315 

that  there  would  undoubtedly  be  a  high  duty  on  finished 
products  entering  Italy  but  a  light  duty  on  raw  mate- 
rials ;  that  there  probably  would  be  a  maximum  and  min- 
imum duty  and  that  the  United  States  would  get  advan- 
tage of  the  minimum  duty;  also  that  the  importation  01 
dyes  into  Italy  would  be  regulated  by  license  and  that  it 
probably  would  be  difficult  to  import  into  Italy  such  dyes 
as  Italy  would  manufacture. 

As  to  the  general  Italian  labor  situation,  the  feeling 
was  that,  following  some  strikes  in  the  early  Spring, 
the  situation  had  greatly  improved ;  that  the  Italian  labor 
was  dependable  and  that  what  it  wanted  was  work  at  a 
living  wage  and  when  this  was  secured,  it  was  contented, 
intelligent  and  hard  working.  It  was  stated  that  labor 
had  increased  in  cost  during  the  war  something  like  400 
per  cent,,  figuring  in  lire ;  that  it  had  gone  up  from  three 
to  twelve  lire  per  day,  the  latter  figuring  about  $1.20  a 
day  at  the  present  rate  of  exchange. 

As  to  the  alkalies,  it  was  stated  that  Italy  was  pro- 
ducing her  requirements  and  would  probably  not  call  on 
the  outside  for  supplies.  She  will,  in  the  development  of 
her  chemical  industry,  require  a  small  quantity  of  benzol. 

In  regard  to  agriculture,  Signer  Quartieri  stated  that  at 
the  moment  it  was  in  rather  poor  shape  because  of  de- 
moralized farm  conditions,  war  damage,  etc.;  that  the 
Italian  government  was  providing  for  the  introduction  of 
better  farm  methods,  reclamations,  etc.  He  stated  that 
Italy  was  not  at  present  in  shape  to  buy  superphosphates 
or  rock  phosphates  from  the  United  States  on  account  of 
the  high  ocean  freights  now  prevailing ;  that  if  rates  were 
reduced  a  considerable  tonnage  of  rock  phosphate  could 
be  used. 

In  regard  to  taxes,  it  was  stated  that  the  profit  taxes 
will  probably  average  about  60^,  but  that  next  year 
these  taxes  will  be  abolished  and  the  income  tax  will 
range  from  15  </f  to  20  %.  It  was  explained  that  Italy, 
like  England  and  the  United  States,  had  imposed  heavy 
taxes  out  of  earnings  in  order  to  meet  war  expenses. 

The  members  of  the  Committee  were  then  introduced 


316        THE  INTERNATIONAL  TRADE  CONFERENCE 

and  told  what  companies  they  represented  and  what 
products  their  companies  manufactured. 

Arrangements  were  made  whereby  the  Italian  dele- 
gates may  interview  the  members  of  the  American  Com- 
mittee and  others  interested  in  chemical  products,  in 
their  offices,  in  order  to  take  up  any  business  proposi- 
tions that  the  Italian  delegates  may  have  in  mind. 

Invitations  were  also  extended  to  the  delegates  to  visit 
many  of  the  American  chemical  plants. 

REPORT  OF  COMMITTEE. 

The  demobilization  of  war  industries  has  been  proceed- 
ing rapidly.  This  has  been  especially  true  in  the  chem- 
ical industry,  which  was  so  greatly  stimulated  during  the 
war.  Much  of  the  chemical  plant  equipment  needed  for 
war  production  has  great  value  in  peace  times.  This  is 
especially  true  in  agricultural  chemicals  and  dye-stuffs. 
By  a  strange  coincidence,  plants  and  cannon  eat  the  same 
food,  and  nitrogen  compounds,  acids,  phosphorus,  potash 
and  other  alkalies  and  chemicals  are  basic  commodities, 
both  in  war  and  peace.  We  are  still  "forging  swords  into 
plowshares/'  as  in  Biblical  times.  One  of  the  difficul- 
ties of  readjustment  and  use  is  that  war  needs  stimulated 
a  plant  equipment  in  certain  lines  away  beyond  immedi- 
ate peace  requirement,  and  years  of  normal  growth  have 
been  discounted.  On  the  other  hand,  additional  equip- 
ment will  be  needed  to  round  out  production  held  back  by 
war  needs.  Before  the  war,  Germany  had  a  practical 
monopoly  in  several  chemical  lines,  and,  as  it  is  easier 
to  buy  than  to  make,  other  countries  had  dozed  along 
chemically  and  had  not  appreciated  the  basic  nature  of 
chemical  production  in  its  relation  to  national  safety  and 
its  peculiar  "key"  position  with  regard  to  the  chemical 
production.  War  developments  brought  home  sharply 
the  need  of  a  self-contained  national  chemical  production, 
and  of  an  army  of  trained  chemists.  Since  the  war,  man- 
ufacturers, frequently  supported  by  their  governments, 
have  been  working  to  change  over  war  plants  to  peace 
production  and  to  round  out  the  output  to  the  end  that 
their  countries  need  not  go  abroad  for  the  bulk  of  their 
chemical  needs.  National  chemical  independence  is 
recommended,  and  perhaps  to  an  exaggerated  degree,  as 
international  chemical  commerce  is  important. 


THE  INTERNATIONAL  TRADE  CONFERENCE        317 

The  two  countries  sending  representatives  of  the  chem- 
ical industry  are  France  and  Italy. 

The  meeting  held  with  the  French  delegates,  headed  by 
Dr.  Roche,  resulted  in  an  interesting  discussion  of  the 
conditions  existing  both  in  France  and  in  the  United 
States  and  future  possibilities.  It  was  stated  that  it  was 
the  French  purpose  to  develop  further  and  completely 
its  chemical  and  electro-chemical  industry,  and  that  par- 
ticular attention  was  being  paid  to  dye-stuffs.  That  fol- 
lowing a  strike  extending  through  the  early  summer 
months,  their  chemical  labor  situation  was  satisfactory; 
that  aside  from  the  procurement  of  wood  distillation 
products,  there  was  little  we  could  supply  them;  that  on 
their  part  their  main  export  in  tonnage  of  importance 
would  be  potash  from  Alsace.  The  French  delegation 
was  informed  that  the  United  States  was  prepared  to 
take  for  the  coming  spring  planting  all  the  potash 
Alsace  could  ship;  that  a  small  importation  was  now 
being  received,  but  that  strikes,  interior  transport  and 
ocean  shipping  difficulties  had  so  far  prevented  any  large 
movement.  The  ocean  shipping  difficulties  should  easily 
be  overcome  as  many  ships  are  returning  in  ballast.  It 
was  intimated  that  at  least  50,000  tons  of  pure  potash, 
contained  in,  say  200,000  tons  of  mixed  product,  could  be 
spared  from  French  needs,  for  winter  and  spring  move- 
ment, if  it  could  be  shipped. 

The  meeting  with  the  Italian  representatives,  with 
Commander  Quartieri  as  spokesman,  developed  similar 
conditions  to  those  existing  in  France — war  chemical 
plants  were  being  changed  over  to  peace-time  require- 
ments, and  normal  production  would  be  secured  as  soon 
as  necessary  raw  materials  could  be  obtained.  Attention 
was  called  to  the  fact  that  a  considerable  tonnage. of 
American  phosphate  rock  could  be  used  but  for  the 
high  ocean  freights  now  prevailing.  Especial  attention 
is  to  be  given  by  the  Italian  government  to  furthering 
the  use  of  fertilizers  in  crop  production.  Signer  Quartieri 
was  strongly  of  the  opinion  that  American  capital  could 
find  profitable  and  helpful  occupation  in  Italy  in.  partner- 
ship with  Italian  chemical  manufacturers,  and  that  it 
could  contribute  experience,  machinery  and  administra- 
tion in  the  further  development  and  rounding  out  of 
Italian  chemical  manufacturing;  that  Italy  possessed 
fine  chemists,  skillful  engineers,  good  workers  and  rela- 
tively cheap  electrical  power.  He  stressed  the  fact  that 
Italy  intended  to  develop  her  dyestuffs  and  general  chem- 
ical industry  that  her  own  needs  might  be  met,  and  that 


318        THE  INTERNATIONAL  TRADE  CONFERENCE 

she  might  be  able  to  do  an  export  business;  that  Italy 
possessed  sulphur,  pyrites,  salt  and  other  chemical  raw 
materials  in  abundance  and  would  call  for  little  raw  ma- 
terial from  the  outside.  As  to  purchases  of  chemical 
from  the  United  States,  there  was  little  this  country  could 
supply  her  with,  benzol  being  one  of  the  commodities. 
As  to  sales  by  Italy,  there  was  not  much  we  could  import 
beyond  that  now  coming  here,  such  as  citric  and  tartaric 
acid,  etc. 

There  was  much  of  general  interest  discussed  at  these 
meetings,  such  as  reasonable  uniformity  in  contract 
terms,  specifications,  methods  of  analysis,  etc.,  in  selling 
goods  for  export. 

Arrangements  were  made  for  the  inspection  of  chem- 
ical plants  by  the  Allied  delegates  and  for  interviews  be- 
tween them  and  chemical  manufacturers  in  this  country. 

The  American  delegates  highly  appreciated  the  oppor- 
tunity of  conferring  with  the  members  of  the  Allied  Mis- 
sions. The  Allied  chemical  industry  has  much  in  com- 
mon and  can  be  mutually  helpful  by  the  exchange  of  re- 
search, by  developing  better  and  fairer  methods  of  mer- 
chandising, and  in  other  ways. 

The  Committee  desires  to  point  out  that  a  continuous 
channel  for  further  study  and  communication  regarding 
chemical  relations  with  our  Allies  exist  through  the  Man- 
ufacturing Chemists  Association  of  the  United  States, 
the  National  Fertilizer  Association,  and  the  American 
Dyes  Institute.  Communications  to  the  Manufacturing 
Chemical  Association  should  be  addressed  to  Mr.  Henry 
Howard,  Chairman  of  the  Executive  Committee  of  the 
Association,  No.  148  State  St.,  Boston,  Mass.,  commu- 
nications to  the  National  Fertilizer  Associations  should 
be  addressed  to  Mr.  W.  D.  Huntington,  President  of  the 
Association,  at  Room  1101,  Garrett  Building,  Baltimore, 
Md.,  and  communications  to  the  American  Dyes  Institute 
should  be  addressed  to  Mr.  William  R.  Corwine,  Secre- 
tary of  the  Institute,  at  21  East  40th  St.,  New  York  City. 
CHARLES  H.  MACDOWELL,  Chairman. 


THE  INTERNATIONAL  TRADE  CONFERENCE        319 

COMMITTEE  ON  COAL. 
BELGIUM. 

M.  HANKAR. 

M.  CANON-LEGRAND. 

M.  NEVE. 

FRANCE. 

M.  DE  PELLERIN  DE  LA  TOUCHE. 

M.  PARMENTIER. 

M.  PONCET. 

M.  INGOUF. 

M.  WADDINGTON. 

M.  GODET. 

M.  VARAIGNE. 

ITALY. 
P.  G.  LAZZERINI. 

F.   QUATTRONE. 
V.  E.   SlLVESTRI. 

E.  FLORES. 

AMERICA. 

FRANK  S.  PEABODY,  Chairman, 

Chairman,  Board  of  Directors,  Peabody  Coal  Co., 

Chicago,  111. 

J.  D.  A.  MORROW,  Vice-Chairman  and  Secretary, 

National  Coal  Assoc.,  Commercial  National  Bank  Buldg., 

Washington,  D.  C. 

W.  EPSEY  ALBIG,  Assistant  Secretary, 

Chamber  of  Commerce  of  the  United  States,  Woolworth  Bldg., 
New  York  City. 

DOVE,  J.  MAURY,  Washington,  D.  C. 

FARRELL,  THOMAS  F.,  Second  Vice-President,  Pocahontas  Fuel  Co., 
New  York  City. 

HUTCHINSON,  S.  P.,  President,  Westmoreland  Coal  Co.,  Phila- 
delphia. 

HEILNER,  SAMUEL,  Percy  Heilner  &  Son,  New  York  City. 


320        THE  INTERNATIONAL  TRADE  CONFERENCE 

LYONS,   HENRY   S.,    Secretary,   New    England    Coal   &  Coke   Co., 

Boston,  Mass. 
WALSH,  JAMES  P.,  Vice-President,  Pittsburgh  Coal  Co.,  Oliver  Bldg , 

Pittsburgh,  Pa. 
WILLIAMS,  W.  H.,  Vice-President,  The   Delaware  &  Hudson  Co., 

New  York  City. 

BURROWS,  L.  M.,  Castner,  Curren  &  Bullitt,  New  York  City. 
GALLOWAY,  A.  W.,  Baltimore,  Md. 
CAPERTON,    G.    H.,    President,    New    River    Coal    Co.,    Charleston, 

West  Virginia. 

MCCANDLISH,  LINDSAU,  Hutchinson  Coal  Co.,  Philadelphia,  Pa. 
PEALE,  REMBRANDT,  Grand  Central  Terminal,  New  York  City. 
RENEHAN,  J.  A.,  New  York  City. 

TIERNEY,  J.  J.,  President,  Powhatan  Coal  &  Coke  Co.,  Philadelphia. 
WATKINS,  T.  H.,  President,  Pennsylvania  Coal  &  Coke  Corp.,  New 

York  City. 
WENTZ,  D.  B.,  Stonega  Coal  &  Coke  Co.,  Philadelphia,  Pa. 

The  conferences  of  the  coal  committees  developed  the 
fact  that  France  and  Italy  are  the  countries  standing  in 
greatest  and  most  immediate  need  of  coal ;  that  Belgium 
is  now  producing  within  90  per  cent,  of  her  pre-war 
capacity,  and  exporting  to  Holland,,  France  and  Italy,  and 
that  bituminous  coal  only  is  wanted.  Likewise  the  ques- 
tion of  American  ship  tonnage  available,  rates  and,  neces- 
sarily, credits.  Great  Britain  did  not  participate  in  the 
Coal  Committee  conferences,  a  coal  authority  from  that 
country  not  being  in  the  delegation,  and  for  the  further 
reason  that  Great  Britain  has  been,  and  is  exporting  coal 
to  the  Allied  countries  in  amounts  detailed  by  the  repre- 
sentatives of  the  importing  countries  represented. 

FRENCH  COAL  COMMITTEE. 

The  French  and  American  Coal  Committees  met  at  the 
Hotel  Traymore  on  Monday,  October  20,  at  2.15  P.  M., 
Chairman  F.  S.  Peabody,  of  the  American  committee,  pre- 
siding. 

Mutual  felicitations  were  exchanged.  Mr.  Peabody,  in 
his  opening  statement,  announced  that  since  the  matter 
of  credit  and  finance  would  be  adjusted  by  the  Committee 
directly  in  charge  of  those  subjects,  they  would  be  omit- 
ted from  discussion  in  the  coal  group.  He  stated  that  four 


THE  INTERNATIONAL  TRADE  CONFERENCE        321 

factors  entered  into  the  furnishing  of  coal  by  the  United 
States  to  the  European  countries : 

The  supply  of  coal, 

Railroad  transportation, 

Pier  facilities, 

Ocean  tonnage. 

At  the  present  time,  a  fifth  factor  of  importance  is 
labor. 

Concerning  the  labor  situation  at  present,  Mr.  Peabody 
explained  clearly,  and  noted  the  demand  of  the  miners' 
organization,  and  the  danger  of  the  strike  on  November  1. 

At  this  point  M.  Francois  Poncet  read  the  following 
statement : 

THE  COAL  PROBLEM  IN  FRANCE  AND  THE  ASSISTANCE  OF 
THE  UNITED  STATES. 

Before  the  war,  France  produced  about  40  million  tons 
of  coal  in  round  figures.  Her  consumption  was  equal  to 
about  63  million  tons.  She  imported  23  million  tons, 
which  made  her  one  of  the  greatest  importers  of  coal 
in  the  world. 

Of  these  23  million  tons  that  France  imported,  11 
million  came  from  England,  7  million  from  Germany  and 
5  million  from  Belgium. 

The  war  and  the  German  invasion  not  only  took  away 
half  of  her  production,  but  removed  half  of  her  importa- 
tion of  coal. 

To  offset  this  terrific  blow  she  was  obliged  to  increase 
the  production  of  the  basins  that  she  still  possessed  as 
much  as  possible,  and  to  request  England,  her  chief  source 
of  supply,  to  increase  the  amount  of  coal  that  was  being 
shipped  to  France  to  as  great  an  extent  as  possible. 

In  this  way  she  was  able  not  only  to  subsist  during  the 
war,  but  to  feed  her  manufacturing  plants,  and  develop 
the  manufacture  of  war  material  to  a  large  degree.  Had 
she  been  able  to  obtain  a  greater  amount  of  coal  she 
would  have  been  in  a  position  to  manufacture  a  much 
greater  quantity  of  steel  than  was  actually  manufac- 
tured. It  was  this  scarcity  of  coal  that  played  an  im- 
portant part  in  limiting  her  metallurgical  productions 
during  the  war. 

The  following  is  the  after- war  situation:  The  mines  of 
the  North  of  France,  and  the  Pas-des-Calais,  that  yielded 


322        THE  INTERNATIONAL  TRADE  CONFERENCE 

20  million  tons  of  coal  in  1913,  are  destroyed.  They  will 
not  be  able  to  produce  any  coal  before  1922  at  the  earliest, 
or  probably  before  1924,  and  until  the  normal  figure  of 
production  is  attained,,  from  ten  to  twelve  years  must 
elapse.  In  the  mines  of  Lens  alone,  working  with  a  force 
of  40,000  h.  p.,  it  will  take  two  years  to  pump  out  the 
water  that  has  overrun  the  pits. 

All  industries  in  the  regions  which  have  been  freed 
from  German  occupation,  and  which  are  now  on  the  road 
to  re-establishment,  require  coal.  In  addition,  industries 
in  general,  that  have  derived  from  the  war  a  new  impetus 
that  is  being  sustained  and  developed,  require  still  more 
coal.  Furthermore,  the  return  of  Lorraine  to  France 
places  at  the  disposal  of  the  metallurgical  industries 
enormous  quantities  of  iron  ore  that  it  intends  to  trans- 
form into  pig  iron  and  steel. 

And  at  this  point  we  must  bear  in  mind  that  progress 
in  industrial  activity  is  indispensable  for  the  recovery  of 
France,  for  the  payment  of  her  debts,  for  the  restoration 
of  her  economic  equilibrium,  all  of  which  factors  consti- 
tute her  internal  peace. 

In  addition  to  all  this,  the  return  of  Alsace-Lorraine  to 
France  in  no  way  represents  a  relief  in  the  coal  situation, 
but  rather  a  further  aggravation  of  it.  Alsace-Lorraine 
produces  3,817,000  tons  of  coal,  but  her  consumption 
reaches  11  million  tons,  which  leaves  a  new  (burden)  re- 
sponsibility of  7,314,000  tons  upon  France. 

A  consideration  of  these  different  factors  gives  rise  to 
the  following  figures : 

The  coal  requirements  of  France,  which  reached  63 
million  tons,  in  1913,  have  now  been  increased  to  about 
88  million  tons.  The  deficit,  which  equalled  23  million 
tons,  approximately  in  1913,  is  attaining  40  million  tons. 
To  this  figure,  for  the  next  ten  years,  we  must  add  the 
20  million  tons  of  coal  that  the  basins  of  the  North  and 
the  Pas-des-Calais  will  be  unable  to  yield  before  another 
ten  years. 

This  means  an  annual  deficit  of  60  million  tons  of  coal 
that  we  must  get  from  outside  in  order  to  be  able  to  live 
and  to  develop  normally. 

The  treaty  of  Peace  assigns  to  France  the  production 
of  the  Saar  basin  for  a  period  of  15  years.  The  Saar 
basin  produced  13  million  tons  of  coal  in  1913,  of  which 
it  consumed  5%  million  tons,  leaving  7%  million  tons  at 
our  disposal. 

The  Treaty  of  Peace  further  provides  that  for  the  next 


THE  INTERNATIONAL  TRADE  CONFERENCE        323 

five  years  Germany  should  deliver  to  France  the  equiv- 
alent of  the  production  of  mines  that  she  destroyed, 
namely,  20  million  tons.  Nor  is  this  coal  to  be  delivered 
gratis ;  it  is  to  be  paid  for  at  a  price  practically  equal  to 
the  export  price  paid  for  English  coal.  The  Treaty  of 
Peace  finally  stipulated  that  Germany  is  to  continue  fur- 
nishing to  France  the  normal  quantities  that  we  received 
from  her  before  the  war,  i.  e.,  1  million  tons. 

By  the  mere  application  of  the  Treaty  of  Peace  we 
should  recover,  at  least  in  theory,  34y2  million  tons  of 
coal. 

We  have  to  find  a  further  quantity  of  26  million  tons. 
Let  us  admit  that  Belgium  will  be  able  to  continue  to  sup- 
ply her  pre-war  figure  of  5  million  tons.  We  shall  have 
to  ask  England  or  other  countries  for  the  remaining  21 
million  tons. 

Now,  it  is  superfluous  to  insist  upon  the  fact  that  Eng- 
land cannot  meet  this  total  figure.  We  shall  be  more  than 
pleased  if  she  will  be  able  to  give  us  from  9  to  10  million 
tons.  The  decrease  in  English  production  that  is  the  re- 
sult of  manifold  reasons  that  have  not  to  be  taken  up 
here,  compel  the  British  government  to  limit  its  export 
to  a  considerable  degree. 

That  is  not  the  sole  difficulty.  It  is  true  that,  ac- 
cording to  the  Treaty  of  Peace,  Germany  is  to  deliver 
27  million  tons  of  coal  to  France.  But  that  does  not 
mean  that  we  can  feel  assured  that  she  will  meet  all  the 
obligations  to  which  she  subscribed.  Germany  alleges  the 
diminution  of  her  own  production,  her  internal  difficulties 
and  a  thousand  other  reasons  in  which  it  is  not  the  sim- 
plest thing  to  distinguish  sincerity  from  bad  will. 

We  must  take  into  consideration  the  difficulties  attend- 
ant upon  transportation  through  the  Rhine,  Rotterdam, 
and  Antwerp,  of  such  unusual  amounts  of  coal.  Canals 
must  be  prepared ;  new  equipment  is  necessary.  Viewing 
the  situation  in  its  most  favorable  light,  and  admitting 
that  Germany  will  supply  all  that  she  has  promised,  it 
will  not  be  before  next  May,  that  is,  until  after  the  win- 
ter season,  that  we  shall  be  able  to  transport  about  two 
million  tons  of  coal  per  month. 

During  1920  we  cannot  reasonably  count  on  more  than 
15  million  tons,  approximately,  of  German  coal. 

To  sum  up :  To  meet  a  deficit  of  60  million  tons  we  shall 
in  reality  receive  but  38  million  tons  (8  million  from  the 
Saar  Basin),  15  from  Germany,  10  from  England,  and  5 
from  Belgium. 


324        THE  INTERNATIONAL  TRADE  CONFERENCE 

There  remains  a  gap  of  22  million  tons.  The  United 
States  can  assist  us  in  filling  this  gap. 

We  expect,  through  a  series  of  systematic  means,  to 
diminish  the  extent  of  our  needs  in  coal  perceptibly.  We 
expect  to  use  liquid  combustibles  as  much  as  possible. 
We  shall  us  hydraulic  force.  We  shall  have  recourse  to 
lignite  and  slate-coal.  We  shall  try  to  classify  coal  more 
carefully  and  enrich  it  through  washings,  etc.  We  shall 
thus  continue  the  rationing  of  the  domestic  consumption 
of  coal,  which  we  are  still  forced  to  observe  and  which 
allows  only  30  kg.  of  coal  to  a  person  each  month. 

But  granted  all  this,  whatever  may  be  the  extent  of 
the  measures  that  we  may  employ,  the  fact  still  remains 
that  France  requires  a  further  supply  of  coal  from  the 
United  States,  which  is  certainly  not  less  than  from  10 
to  15  million  tons.  At  any  rate,  this  figure  seems  to  ex- 
ceed the  quantity  which  the  United  States  could  give  us. 
As  a  result,  we  can  really  say  that  the  French  market  can 
absorb  all  the  coal  that  the  United  States  could  give  it. 

The  problem  of  receiving  coal  in  France  from  America 
resolves  itself  practically  to  a  question  of  available  ton- 
nage, of  freight,  of  selling  price,  and  to  the  more  general 
question  of  the  rate  of  exchange. 

On  these  points  we  really  require  more  information 
than  we  can  give. 

We  can  do  little  more  than  say  that  because  of  the 
difficulty  in  obtaining  freight,  its  cost,  and  the  increase 
in  the  exchange  rate,  we  have  not  been  in  a  position  to 
attempt  the  extensive  importation  of  coal  into  France 
from  America,  except  for  minimum  quantities.  We  have 
had  resort  to  American  coal  only  as  a  last  expedient  or 
as  a  desperate  measure. 

The  net  cost  of  a  ton  of  American  coal  delivered  in  the 
port  of  St.  Nazaire,  is  about  250  /.  ($32).  This  price  ex- 
ceeds the  cost  of  English  coal  by  about  100  /.,  and  makes 
the  cost  of  American  coal  practically  prohibitive. 

Does  that  mean  that  we  shall  be  unable  to  find  the 
assistance  that  we  require  to  such  an  extent  in  the  United 
States  ?  Many  people  are  of  this  opinion.  But  this  is  not 
our  opinion.  We  believe  that  before  we  can  say  that  the 
problem  cannot  be  solved  we  should  study  it  at  very  close 
range,  and  we  are  grateful  that  the  initiative  of  the 
Chamber  of  Commerce  has  made  it  possible  for  us  today 
to  appeal  to  your  cooperation. 

The  amount  of  tonnage  that  is  available  is  a  considera- 
tion that  concerns  you  alone,  in  view  of  the  present  state 
of  our  fleet  of  coal-ships. 


THE  INTERNATIONAL  TRADE  CONFERENCE        325 

The  freight  rate  may  probably  be  decreased  by  mak- 
ing arrangements  for  a  return  freight.  It  can  easily  be 
conceived  that  an  American  coal-ship  carrying  coal  to 
Marseilles,  can  bring  back  bauxite  or  Algerian  iron-ore  to 
America.  It  can  also  be  conceived  that  by  placing  con- 
tracts that  would  provide  for  the  delivery  of  a  considera- 
ble quantity  of  coal  for  a  period  of  several  years  would 
result  in  the  lowering  of  the  present  price. 

As  to  the  questions  of  modes  of  payment,  long-term 
credits,  and  that  obstacle  that  has  become  almost  insur- 
mountable, the  exchange,  it  remains  for  the  Finance  Com- 
mittee to  study  this  side  of  the  problem  which  we  are  here 
considering.  But,  we  still  appeal  to  your  personal  sug- 
gestions on  this  point. 

M.  FRANCOIS  PONCET. 

In  reply,  Mr.  Peabody  said  that  the  operators  of  the 
United  States  would  be  glad  to  furnish  France  the  coal 
needed,  and  were  quite  ready  to  make  contracts  for  sev- 
eral million  tons  of  coal  to  go  to  France  during  a  period 
of  years,  if  such  arrangements  were  desired  by  the 
French. 

Mr.  Farrell  analyzed  the  present  prices  for  American 
coal  delivered  in  France,  and  showed  that  ocean  freight 
accounted  for  three-fourths  of  the  total  delivered  price. 
He  dwelt  on  the  fact  that  these  high  ocean  rates  neces- 
sarily acted  as  a  restriction  upon  the  development  of  the 
American  export  coal  business.  The  fact,  that  the  bitum- 
inous production  this  year,  is  approximately  100  million 
tons  less  than  last  year,  shows  clearly  the  ability  of  the 
American  mines  to  supply  European  needs,  if  shipping  is 
available  to  transport  the  coal. 

Mr.  Wilshire,  emphasized  the  belief  that  lack  of  ship- 
ping was  the  primary  difficulty  of  getting  an  adequate 
supply  of  coal  to  France  in  the  immediate  future.  He 
said,  he  was  confident  that  the  coal  could  be  produced  to 
the  amount  necessary,  but  that  sufficient  shipping  was 
not  available. 

Mr.  Farrell  and  Mr.  Wilshire,  explained  the  workings 
of  the  tide  water  coal  pools  to  the  French  delegation,  in 
order  that  they  might  better  understand  the  impossibility 


326        THE  INTERNATIONAL  TRADE  CONFERENCE 

of  shipping  coal  of  stipulated  quality,  if  it  were  handled 
through  these  pools. 

Mr.  Walsh  elicited  the  information  from  M.  Wadding- 
ton,  that  France  needs  three  times  as  much  low  volatile 
as  high  volatile  coal.  It  was  pointed  out  by  Mr.  Wilshire, 
that  with  the  most  efficient  use  of  our  present  railroad 
and  harbor  facilities,  the  United  States  could  export  over- 
seas 25  to  30  million  tons  of  coal  per  year.  If,  however, 
greater  exportation  is  desired,  additional  piers  and  tide 
water  terminals  must  necessarily  be  developed. 

The  export  possibilities  of  the  Southern  Appalachian 
coal  fields,  which  use  in  large  measure  the  Port  of  Charles- 
ton, was  explained  by  Mr.  Knode. 

The  information  relative  to  the  allocation  of  vessels  for 
coal  tonnage  to  Europe  was  given  by  Mr.  Lyons,  supple- 
mented by  Mr.  Saint,  of  the  Export  Coal  Division,  of  the 
United  States  Shipping  Board. 

Mr.  Morrow  explained,  briefly  and  clearly,  the  different 
kinds  of  coal  available  for  export.  He  also  warned  the 
delegation  against  buying  from  irresponsible  parties,  and 
emphasized  the  need  of  care  in  the  purchase  of  coal. 

Attending  the  conference  were  the  following : 

For  France. 
M.  FRANCOIS  PONCET. 
M.  A.  F.  WADDINGTON. 
M.  N.  GODET. 

COMMANDANT  HENRY  VARRAIGNE. 
M.  JEAN  PARMENTIER. 

For  United  States. 

FRANK  S.  PEABODY,  Chairman;  Board  of  Directors,  Peabody  Coal 

Co. 

J.  D.  A.  MORROW,  Vice-President,  National  Coal  Association. 
THOS.  F.  FARRELL,  Vice  President,  Pocahontas  Fuel  Co. 
HENRY  S.  LYONS,  Secretary,  New  England  Coal  &  Coke  Co. 

F.  W.  WILSHIRE,  Vice  President,  The  Consolidation  Coal  Co. 
JAMES  P.  WALSH,  Vice  President,  Pittsburgh  Coal  Co. 
RALPH  H.  KNODE,  Vice  President,  Stonega  Coke  &  Coal  Co. 

G.  B.    SEYMS,    Rep.    S.    P.    Hutchinson,    President,   Westmoreland 
Coal  Co. 


THE  INTERNATIONAL  TRADE  CONFERENCE        327 

H.  A.  COCHRAN,  Rep.  A.  W.  Galloway,  President,  Davis  Coal  & 
Coke  Co.  and  Pittsburgh  Terminal  Railroad  &  Coal  Co. 

A.  M.  FINE,  Vice-President,  Rep.  W.  H.  Williams,  Vice-President 
Delaware  &  Hudson  Coal  Company. 

GEORGE  S.  RICE,  Chief  Mining  Engineer,  U.  S.  Bureau  of  Mines. 

H.  Y.  SAINT,  Export  Coal  Division,  U.  S.  Shipping  Board. 

J.  H.  Johnston,  Director,  Chamber  of  Commerce  of  the  U.  S. 

JOHN  CALLAHAN,  Traffic  Manager,  National  Coal  Association. 

J.  0.  CALDWELL,  Secretary  to  Traffic  Manager,  National  Coal  As- 
sociation. 

WILLIAM  R.  BENET,  Rep.  Nation's  Business. 

W.  ESPEY  ALBIG,  Assistant  Secretary,  Rep.  Chamber  of  Commerce 
of  the  United  States. 

ITALIAN  COAL  COMMITTEE. 

The  coal  committee  met  with  the  Italian  delegation  on 
October  20,  at  8.15  P.  M.  In  the  absence  of  the  chair- 
man, who  had  been  called  to  Washington,  to  attend  the 
Wage  Conference,  with  Secretary  of  Labor  Wilson,  Mr. 
Wilshire,  presided. 

After  a  warm  exchange  of  greetings  between  the  Ital- 
ian and  American  delegations,  Chairman  Wilshire  gave  a 
statement  of  conditions  similar  to  that  given  the  French 
mission,  at  the  earlier  meeting.  In  reply,  Prof.  Attolico 
gave  a  brief  resume  of  the  Italian  situation,  explaining 
the  great  need  of  coal  in  Italy  to  be  supplied  by  the  United 
States.  He  pointed  out,  however,  that  the  amount  of  coal 
must  necessarily  be  conditioned  upon  the  price,  since  the 
coal  would  enter  into  the  cost  of  the  manufacture  of 
articles  to  be  sold  on  a  competitive  basis.  He  emphasized 
the  great  burden  placed  upon  Italian  consumers  by  the 
present  ocean  freight  rates,  and  expressed  the  hope  that 
some  reduction  in  these  rates  might  be  obtained.  He 
stated  also,  that  since  Italy  would  be  a  constant  buyer 
in  the  coal  trade,  it  would  be  worth  while  for  the  pro- 
ducers in  the  United  States  to  make  price  concessions  to 
the  Italian  buyers. 

The  discussion  developed  the  fact  that  Italy  has  been 
receiving  from  the  United  States  a  considerable  quantity 
of  inferior  coal.  The  reason  for  this  was  explained,  as 
it  was  to  the  French  delegation.  The  discussion  of  prac- 


328        THE  INTERNATIONAL  TRADE  CONFERENCE 

tical  ways  and  means  to  increase  the  Italian  coal  market 
always  eventually  reached  the  matter  of  ocean  freight 
rates. 

In  conclusion,  Mr.  Wilshire  assured  the  Italian  Mission, 
that  the  American  coal  industry  would  be  glad  to  do  its 
utmost  to  obtain  coal  supplies  of  the  quantity  and  kind 
needed. 

The  close  study  of  conditions  in  America,  which  has 
been  made  by  the  Italian  Mission,  led  to  a  close  agree- 
ment between  the  American  and  Italian  groups,  regard- 
ing the  facts,  and  the  measure  which  should  be  taken 
for  mutual  helpfulness. 

Attending  the  conference  were  the  following: 

For  Italy. 

COMMANDER  PROF.  BERNARDO  ATTOLICO. 
COMMANDER  ENGINEER  DR.  LUIGI  LUIGGI. 
SIG.  P.  G.  LAZZERINI. 
SIG.  ENGINEER  F.  QUATTRONE. 

For  The  United  States. 

J.  D.  A.  MORROW. 

F.  W.  WILSHIRE. 
A.  M.  FINE. 
JAMES  P.  WALSH. 
H.  A.  COCHRAN. 
JOHN  CALLAHAN. 
HENRY  S.  LYONS. 
J.  O.  CALDWELL. 

G.  B.  SEYMS. 
GEORGE  S.  RICE. 
H.  Y.  SAINT. 
WILLIAM  R.  BENET. 

PAUL  CLAGSTONE,  District  Secretary,  Chamber  of  Commerce  of 
the  United  States. 

JOSEPH  CHIESA,  Trade  Commissioner,  Bureau  Foreign  and  Domes- 
tic Commerce,  United  States  Government. 

W.  ESPEY  ALBIG,  Assistant  Secretary,  Chamber  of  Commerce  of 
the  United  States. 

BELGIAN  COAL  COMMITTEE. 
The  Coal  Committee  met  with  the  Belgian  delegation, 


THE  INTERNATIONAL  TRADE  CONFERENCE        329 

on  October  21,  at  2.15  P.  M.  Mr.  J.  D.  A.  Morrow,  as 
presiding  officer,  gave  greetings  to  the  Belgian  Group,  and 
received  in  exchange  cordial  felicitations  from  it.  He  gave 
illuminating  and  concise  explanation  of  the  different  kinds 
of  American  coal  available  for  export,  showing  the  loca- 
tion of  the  fields,  and  the  ports  from  which  shipments 
are  made. 

In  reply,  Mr.  De  Groote  and  Mr.  Neve  stated  that  Bel- 
gium is  now  producing  nearly  90  per  cent,  of  her  pre-war 
output,  and  that,  her  chief  requirements  are  for  a  compar- 
atively small  tonnage  of  coal  for  special  uses,  particularly 
for  cooking  and  metallurgical  purposes.  He  stated  that 
prior  to  the  war  this  coal  had  been  obtained  from  Ger- 
many ;  now  it  must  be  secured  in  the  United  States.  Bel- 
gium is  now  exporting  quantities  of  coal  to  Holland, 
France  and  Italy. 

Discussion  disclosed  the  fact  that  anthracite  coal  from 
America  is  wanted  neither  in  Belgium,  France  or  Italy. 
The  members  of  the  Group  discussed  technical  questions 
regarding  the  characteristics  of  American  gas  coals,  and 
their  utilization  in  by-product  ovens,  illuminating  gas 
plants  and  for  other  purposes.  The  Belgian  delegation 
explained  that  owing  to  the  very  high  ocean  freight  rates 
the  Belgians  would  manage  to  get  along  with  the  smallest 
possible  importation  of  coal.  Information  was  given 
showing  that  Antwerp  is  installing  facilities  for  the  rapid 
handling  of  coal.  The  discussion  was  quite  informal,  very 
friendly  and  illuminating. 

A  comparison  of  the  statements  of  the  three  delega- 
tions, shows  that  the  French  are  especially  desirous  of 
securing  the  greatest  possible  quantity  of  coal  from  the 
"United  States  within  the  next  few  months.  The  price 
to  be  paid,  while  important,  is  a  secondary  consideration. 

The  Italians  should  like  to  have  approximately  1  million 
tons  of  coal  per  month  from  the  United  States.  This, 
however,  is  conditioned  upon  the  price,  since  the  cost 
of  the  coal  enters  into  the  selling  price  of  articles  for 
competitive  sale,  only  the  requirements  of  the  Navy  and 
the  railways  being  absolutely  necessary. 


330        THE  INTERNATIONAL  TRADE  CONFERENCE 

The  Belgians  were  concerned  chiefly  with  the  chemical 
properties  of  the  small  amount  of  coal  which  they  re- 
quire from  the  United  States. 

Attending  the  conference  were  the  following : 

For  Belgium. 

M.  FLORIMOND  HANKAR. 

M.  ALBERT  NEVE. 

M.  ALEXANDRE  DE  GROOTE. 

For  America. 

F.  W.  WlLSHIRE. 

J.  D.  A.  MORROW. 
THOS.  S.  FARRELL. 
H.  A.  COCHRAN. 
JOHN  CALLAHAN. 
HENRY  S.  LYONS. 
J.  O.  CALDWELL. 

G.  B.  SEYMS. 
GEORGE  S.  RICE. 
WILLIAM  R.  BENET. 

G.  W.  REED,  Vice  President,  Peabody  Coal  Co. 
DAVID  J.  LEWIS,  Member  of  United  States  Tariff  Commission. 
W.  ESPEY  ALBIG,  Assistant  Secretary,  Chamber  of  Commerce  of 
the  United  States. 


FORMULATION  OF  REPORT. 

Subsequent  to  the  sessions  with  the  European  Missions, 
the  American  Committee,  augumented  by  Samuel  Heilner, 
of  Percy  Heilner  &  Son,  New  York  City,  Lindsay  Mc- 
Candlish,  Hutchinson  Coal  Co.,  Philadelphia,  Pa.,  held 
several  meetings  to  perfect  a  complete  statement  of  re- 
sults attained  during  the  conference  and  to  formulate 
adequate  resolutions. 


THE  INTERNATIONAL  TRADE  CONFERENCE        331 


REPORT  OF  COMMITTEE. 

The  Coal  Committee  met  with  the  delegations  from 
France,  Italy  and  Belgium,  according  to  schedule. 

The  French  delegation  stated  that  the  total  require- 
ments of  France  would  be  about  88  million  tons  per  year. 
During  the  present  winter  it  seems  unlikely  that  Ger- 
many will  be  able  to  deliver  the  coal  to  France  stipulated 
by  the  Peace  Treaty.  Allowing,  however,  for  the  imports 
that  can  be  obtained  from  Germany,  Belgium  and  England 
more  than  22  million  tons  of  coal  are  now  required  from 
the  United  States.  For  some  years  to  come  several  million 
tons  must  be  imported  from  America.  Members  of  the 
French  delegation  expressed  the  belief  that  control  of 
imports  and  distribution  of  coal  in  France,  by  the  French 
Government  would  be  continued  for  perhaps  six 
months;  thereafter  it  was  expected  that  the  business 
would  return  to  private  hands.  The  Committee  empha- 
sized the  high  price  of  American  coal  delivered  in  France 
due  to  high  ocean  freights.  They  also  spoke  of  the  diffi- 
culty of  obtaining  sufficient  vessel  tonnage  to  transport 
coal. 

The  Italian  delegation  dwelt  on  the  importance  of  de- 
veloping a  permanent  coal  trade  between  the  United 
States  and  Italy,  and  said  that  Italy  would  necessarily 
now  look  to  this  nation  for  several  million  tons  of  coal 
annually.  They  also  pointed  out  the  excessive  cost  to 
Italy  of  present  imports  of  American  coal  with  ocean 
freights  so  high,  and  with  exchange  rates  so  unfavorable 
to  Italy.  Speaking  of  the  scarcity  of  shipping  to  trans- 
port coal  to  Italy,  the  delegates  explained  that  Italy  is 
using  some  of  her  own  ships,  and  is  chartering  other 
ships  to  carry  her  coal  imports,  and  is  thus  helping  to 
bear  the  burden  of  transporting  coal  across  the  ocean. 

The  conference  with  the  Belgian  representatives  de- 
veloped the  fact  that  Belgium  is  now  producing  nearly 
90  per  cent,  of  her  pre-war  coal  production.  Her  chief 
needs  are  for  coking  and  other  special  coals,  but  with 
the  present  prices  of  American  coal  so  high  when  de- 
livered in  Belgium,  on  account  of  ocean  freights,  no  im- 
portant purchases  of  coal  by  Belgium  in  this  market  are 
to  be  expected. 

Your  Committee  explained  the  nature  of  American 
coals  and  the  different  kinds  which  are  available  for  ex- 
port, and  for  use  abroad.  It  mentioned  the  probability 


332        THE  INTERNATIONAL  TRADE  CONFERENCE 

of  a  strike  of  bituminous  coal  miners  on  November  first. 
Your  Committee  felt  it  necessary  to  warn  European  pur- 
chasers against  the  activities  of  irresponsible  speculators 
in  the  export  coal  trade,  many  of  whom  have  never  had 
any  connection  with  the  coal  business,  and  have  no  ex- 
pectation of  continuing  in  it,  and  are  offering  to  sell  coals 
which  they  can  not  obtain  and  deliver.  It  explained,  that 
the  Tidewater  coal  pools,  conducted  by  the  United  States 
Railroad  Administration,  prevent  the  delivery  of  coal  of 
stipulated  character  on  export  contracts  when  the  coal 
is  handled  through  these  pools.  This  statement  developed 
the  fact  that  European  buyers  are  opposed  to  accepting 
pool  coal,  and  do  so  only  because  they  may  not  be  able 
to  obtain  what  they  require  outside  the  pools. 

Credits  and  financial  arrangements  were  mentioned,  but 
were  left  to  the  Committees  on  Credit  and  Finance,  with 
the  assurance  that  American  coal  exporters  would  do 
their  full  part  in  carrying  out  any  recommendations  of 
the  Committee  on  Credit  and  Finance. 

The  conference  developed  the  unanimous  opinion,  that 
there  is  no  European  demand  for  anthracite,  but  that  the 
need  is  for  bituminous  coal.  It  was  made  clear  that, 
barring  a  strike,  America  can  produce  ample  bituminous 
coal  of  the  quantities  and  kinds  sufficient  to  supply  the 
needs  of  our  Allies  in  Europe,  but  that  scarcity  of  ocean 
shipping  and  high  ocean  freight  rates  are  preventing  the 
shipment  of  the  coal  required.  The  further  fact  was 
brought  out  that  if  our  overseas  coal  trade  is  to  be  much 
expanded,  better  facilities  must  be  provided  for  export 
shipments  at  American  coal  ports,  and  for  discharge  at 
European  ports. 

The  conferences  also  developed  unanimity  of  sentiment 
that  the  task  of  supplying  our  Allies  with  sufficient  coal 
can  best  be  handled  through  the  normal  activities  of  the 
business  men  of  the  nations  involved,  free  from  restric- 
tions or  interference  by  their  Governments. 

In  conclusion,  your  Committee  desires  to  express  its  ap- 
preciation of  the  great  and  progressive  work  done  by 
the  United  States  Chamber  of  Commerce,  and  pledges 
itself,  and  the  coal  industry  to  use  every  possible  effort 
to  bring  to  a  successful  outcome  the  deliberations  of  the 
Conference.  We  also  wish  to  express  to  the  members  of 
the  visiting  delegations,  our  thanks  for  the  clear  and  lucid 
manner  in  which  they  brought  the  necessities  of  their 
respective  nations  before  us  and  the  helpful  suggestions 
they  made. 

FRANK  S.  PEABODY,  Chairman. 


THE  INTERNATIONAL  TRADE  CONFERENCE        333 

COMMITTEES  ON  FOODSTUFFS. 
BELGIUM. 

M.  DE  GROOTE. 
M.  HANKAR. 
M.  JANSSEN. 

FRANCE. 

M.  JULIEN  POTIN. 

M.  BARON  DU  MARAIS. 

M.  ANDRE  HOMBERG. 

M.  LOIZEAU. 

M.  MAURICE  BOYER. 

M.  DE  PELLERIN  DE  LA  TOUCHE. 

M.  PARMENTIER. 

GREAT  BRITAIN. 

HON.  J.  G.  JENKINS. 
BAILIE  JOHN  KING. 
MR.  FRANK  MOORE. 

ITALY. 

PROF.  B.  ATTOLICO. 
V.  MENEGHELLI. 
A.  JACCARINO. 
G.  PIETRA. 
DR.  RUGGIERI. 
G.  GRANATA. 

AMERICA. 

THEODORE  F.  WHITMARSH,  Chairman;  Vice-President,  Francis  H. 
Leggett  &  Co.,  New  York  City. 

DR.  VERNON  KELLOGG,  Vice-Chairman  and  Secretary,  The  Na- 
tional Research  Council,  Washington,  D.  C. 

ADOLPH  BOLDT,  Assistant  Secretary,  Chamber  of  Commerce  of  the 
United  States,  Chicago,  111. 

AMENDT,  GEORGE  A.,  The  Amendt  Milling  Co.,  Monroe,  Mich. 

BARNES,  JULIUS  H.,  President,  Food  Administration  Grain  Cor- 
poration. 


334        THE  INTERNATIONAL  TRADE  CONFERENCE 

BENTLEY,  C.  H.,  Vice-President,  California  Packing  Corporation, 
San  Francisco,  Cal. 

BISHOP,  L.  R.,  Secretary,  Rice  Association  of  California,  San  Fran- 
cisco, Cal. 

BREISCH,  CHRISTIAN,  President,  Michigan  Bean  Association,  Lans- 
ing, Mich. 

BURROWS,  W.  F.,  Libby,  McNeill  &  Libby,  Chicago,  111. 

DAILY,  H.  A.  N.,  President,  National  Canned  Foods  and  Dried 
Fruit  Brokers'  Association,  Philadelphia,  Pa. 

DEMING,  E.  B.,  Pacific-American  Fisheries,  South  Bellingham, 
Wash. 

DOTY,  E.  E.,  President,  New  York  State  Bean  Shippers'  Associa- 
tion, Rochester,  N.  Y. 

FLASH,  EDWARD  FRANK,  JR.,  President,  New  York  Produce  Ex- 
change, New  York  City. 

HAWKINSON,  J.  A.,  President,  Allied  Packers,  Inc.,  Chicago,  111. 

JACKSON,  GEORGE  S.,  Vice-President,  Food  Administration  Grain 
Corporation,  Baltimore,  Md. 

MAHR,  JULIUS  D.,  New  York  Mercantile  Exchange,  New  York  City. 

MOORE,  O.  J.,  Sioux  City,  Iowa. 

MORGAN,  S.  T.,  President,  Southern  Cotton  Oil  Co.,  New  York  City. 

NISWANDER,  J.  F.,  Vice-President,  California  Peach  Growers'  As- 
sociation, Fresno,  Cal. 

NORDIN,  W.  T.,  American  Milk  Products  Corp.,  New  York  City. 

SEARS,  L.  A.,  W.  R.  Roach  &  Co.,  Grand  Rapids,  Mich. 

SKIPWORTH,  V.  D.,  Vice-President,  Wilson  &  Co.,  New  York  City. 

SWEET,  W.  F.,  President,  Rumford  Chemical  Works,  American 
Specialty  Manufacturers'  Association,  Providence,  R.  I. 

STUART,  HENRY,  Richmond,  Va. 

SWIFT,  G.  F.,  JR.,  Swift  &  Co.,  Chicago,  111. 

THOMAS,  HOLGATE,  California  Associated  Raisin  Co.,  Fresno,  Cal. 

WHITE,  F.  EDSON,  Armour  &  Co.,  Chicago,  111. 

BELGIUM. 

The  Committee  on  Foodstuffs  met  October  20,  at  2:15 
P.  M.,  with  the  Belgian  Committee,  consisting  of  M.  De 
Groote  and  M.  Hankar.  The  American  Committee  in  at- 
tendance were  as  follows : 

THEODORE  F.  WHITMARSH,  Chairman. 
DR.  VERNON  KELLOGG,  Vice-Chairman. 
ADOLPH   BOLDT,  Assistant   Secretary. 
C.  H.  BENTLEY. 
L.  R.  BISHOP. 
CHRISTIAN  BREISCH. 
W.  F.  BURROWS. 


THE  INTERNATIONAL  TRADE  CONFERENCE        335 

H.  A.  N.  DAILY. 
E.  B.  DEMING. 

E.  E.  DOTY. 

J.  A.  HAWKINSON. 

GEORGE  S.  JACKSON. 

JULIUS  D.  MAHR. 

O.  J.  MOORE. 

S.  T.  MORGAN. 

J.  F.  NISWANDER.  \ 

W.  T.  NORDIN. 

L.  A.  SEARS. 

V.  D.  SKIPWORTH. 

Gov.  HENRY  STUART. 

HOLGATE  THOMAS. 

F.  EDSON  WHITE. 
DR.  ALONZO  TAYLOR. 
MR.  F.  B.  WISE. 

Chairman  Whitmarsh,  announced  that  the  discussions 
would  be  informal,  and  questions  would  be  asked  so  as  to 
develop  the  freest  exchange  of  conditions  and  ideas.  The 
Belgian  Committee  reported  in  substance  as  follows : 

That  the  United  States  price  on  wheat  and  freight  rates 
are  high,  and  that  the  exchange  rate  also  militated 
against  their  buying  in  this  country.  The  present  ex- 
change rate  with  the  United  States  is  8.65,  as  compared 
with  the  normal  rate  of  5.20.  Freight  rates  on  wheat 
from  the  United  States  to  Great  Britain  is  one-half  that 
to  Belgium.  However,  as  explained,  this  is  due  to  the  fact 
that  the  rate  to  England  on  wheat  is  fixed  by  the  gov- 
ernment. 

Mr.  George  S.  Jackson,  Vice-President  of  the  Food  Ad- 
ministration Grain  Corporation,  explained  that  England 
gained  the  advantage  by  compelling  her  own  ships  to 
carry  grain  at  a  low  rate,  and  that  the  United  States  Ship- 
ping Board  could  not  change  the  situation  so  long  as 
England  maintained  her  present  policy.  In  order  to  ab- 
sorb part  of  the  unfavorable  exchange  and  obviate  too 
high  prices  the  Belgian  Government  is  selling  the  wheat 
to  consumers  at  less  than  cost. 

Belgium  produces  three-fourths  of  her  requirements 
in  bread  products.  Before  the  war  they  imported  one- 
half  of  their  breadstuffs  products  from  the  Black  Sea 
countries.  The  exchange  rate  with  other  countries  is  more 
favorable  than  with  the  United  States.  The  Belgian 
delegates  reported  that  they  will  soon  be  able  to  obtain 


336        THE  INTERNATIONAL  TRADE  CONFERENCE 

wheat  from  Russia  and  Roumania.  They  also  reported 
having  investments  and  money  in  Argentine,  where  they 
can  also  buy  wheat. 

There  is  no  demand  for  canned  vegetables,  milk  and 
fruit  in  Belgium,  but  there  is  some  demand  for  canned 
meats.  They  are  now  importing  some  cattle  from  Can- 
ada, United  States  and  Holland.  The  fishing  industry 
of  Belgium,  is  not  yet  normal,  but  it  is  hoped  that  condi- 
tions will  improve  in  the  near  future. 

Of  the  edible  oils  they  import,  one-fourth  comes  from 
the  United  States,,  the  balance  from  East  India,  China 
and  Japan.  They  also  import  peanuts  and  copra, 
which  they  crush  themselves.  The  exchange  rate  is  a 
little  more  favorable  in  the  East  than  with  the  United 
States.  Consumption  of  butter  substitutes  is  increasing. 
There  is  very  little  demand  for  rice  and  dried  fruit,  as 
they  are  a  fruit  producing  country.  They  purchase  goods 
from  the  East  by  exchanging  products,  shipping  some 
steel  to  India.  They  are  large  packers  and  exporters  of 
canned  peas  and  asparagus. 

There  is  no  demand  for  corn  for  human  consumption, 
and  very  little  demand  for  beans,  as  they  now  desire  a 
change  from  their  war  diet.  The  Belgian  delegates  re- 
ported that  if  their  exports  to  the  United  States  could 
be  increased,  the  export  rates  would  become  more  favor- 
able. 

On  the  subject  of  long  credits,  M.  De  Groote  empha- 
sized the  fact,  that  credits  were  not  sought,  because  Bel- 
gium has  no  money,  but  almost  entirely  because  of  the 
present  unfavorable  rate  of  exchange.  Until  this  is  cor- 
rected, he  said,  there  can  be  no  great  extension  of  his 
country's  trade  with  us. 

Dr.  Alonzo  Taylor,  who  attended  the  meeting,  and  made 
an  informal  statement  at  the  request  of  Chairman  Whit- 
marsh,  warned  the  Americans  that  more  rather  than 
less  government  control  of  trade  was  to  be  expected  in 
European  countries.  In  order  to  restrict  imports  to  those 
products,  which  were  most  needed  in  reconstruction,  the 
European  governments  would  make  every  effort  to  ex- 
clude other  goods,  even  keeping  food  imports  down  to 
the  lowest  level  consistent  with  the  necessary  feeding  of 
their  peoples. 

FRANCE. 
At  a  meeting  of  the  Committee  on  Foodstuffs,  October 


THE  INTERNATIONAL  TRADE  CONFERENCE        337 

20,  at  8.15  P.  M.,  the  following  delegates  of  France  were 
present : 

M.  TIRMAN. 

M.  WADDINGTON. 

M.  BOUYSSON. 

M.  POTIN. 

M.    DOLLEANS. 

M.  PARMENTIER. 
M.  BOYER. 

In  the  informal  conference,  the  following  facts  and 
statements  were  submitted: 

Argentine  grain  can  be  bought  for  less  than  it  can  be 
bought  from  the  United  States. 

France  has  investments  in  Argentine,  which  is  a  fac- 
tor in  maintaining  the  balance  of  exchange. 

France  now  raises  quite  a  few  hogs  and  within  a  year 
expects  to  raise  enough  for  their  own  requirements. 

Edible  oils  are  obtained  from  her  colonies,  especially 
in  Africa,  to  meet  their  requirements.  They  import  con- 
siderable cotton  seed  and  crush  same  themselves. 

In  the  final  analysis,  the  question  of  buying  products 
from  this  country  is  one  of  credit  and  exchange.  The 
shortage  of  labor  is  still  felt  in  France.  As  a  result  of 
the  war,  they  lost  1,700,000  men. 

Delegates  believe  the  question  of  paying  for  food  and 
other  products  must  be  solved  by  the  Financial  Commit- 
tee. 

Mr.  Bell,  of  the  Washburn-Crosby  Flour  Mills,  Minne- 
apolis, Minn.,  suggested  that  the  question  of  exchange 
will  adjust  itself  if  we  can  aid  France  in  increasing  her 
production  and  selling  us  more  goods. 

It  was  suggested  by  the  Americans,  that  France  could 
materially  increase  her  exports  to  the  United  States,  by 
increasing  production  of  her  high  grade  canned  goods, 
and  thereby  reduce  the  cost,  which  is  necessary  in  order 
to  increase  their  volume  of  business  in  this  country. 

The  fact  was  developed,  that  France's  exports  of  wine 
and  spirituous  liquors  for  the  year  ending  June  30,  1914, 
amounted  to  only  $7,000,000.  The  suggestion  was  offered 
that  as  France  has  recently  acquired  considerable  potash 
fields,  that  their  exports  of  such  products  could  be  ma- 
terially increased  to  this  country,,  which  would  more  than 
offset  the  loss  on  wine  exports. 

It  was  reported  that  France  has  perhaps  less  labor  un- 
rest than  any  other  European  country. 


338        THE  INTERNATIONAL  TRADE  CONFERENCE 

France  has  a  big  wheat  production,  and  can  practi- 
cally grow  enough  to  meet  all  their  requirements.  They, 
however,  will  need  and  can  use  considerable  dried  fruits. 

They  export  to  the  United  States  considerably  in  sar- 
dines, mineral  waters,  preserves,  linens,  dresses  and  in 
art  products.  It  was  developed  that  as  7,000,000  men 
of  France  enlisted  in  the  army,  very  few  were  demobilized 
in  time  to  be  of  any  material  aid  in  crop  production  this 
year,  hence  France  is  in  great  need  of  all  foodstuffs  this 
year. 

During  the  Conference,  M.  Jules  Potin  submitted  a  for- 
mal report,  as  follows : 

REPORT  ON  AGRICULTURE  AND  FOODSTUFFS  IN 

FRANCE. 

BY  M.  JULIEN  POTIN 

I  am  now  touching  a  topic  that  will  not  fail  to  interest 
you  all,  gentlemen,  as  it  is  the  basis  of  our  material  life : 
I  mean  foodstuffs. 

France,  before  the  war,  enjoyed  from  the  foodstuff 
point  of  view,  a  most  desirable  situation  due  to  her  fertile 
soil,  to  her  mild  climate,  to  the  qualities  of  her  peasants. 
She  found  within  her  own  boundaries  the  greatest  part 
of  the  necessary  foodstuffs. 

A  few  figures  will  illustrate  what  I  have  just  said:  In 
1912,  we  imported  only  6%  of  our  wheat,  less  than  3% 
of  our  oats  from  our  Colonies,  hardly  any  sugar  was 
needed  and,  as  to  meat,  only  a  few  specialties. 

Said  situation  has  been  destroyed  by  the  war.  Our 
mobilization  has  withdrawn  from  the  fields  all  our  young 
and  middle-aged  manhood,  and  the  richest  part  of  our 
territory,  which  gave  the  greater  part  of  our  sugar  and 
an  important  part  of  our  cereals  had  been  invaded  at  the 
beginning  of  the  war  and  devastated. 

The  area  of  tilled  land  passed  from  1913  to  1917- 

For  wheat:  from  16,355  acres  to  10,477  acres. 

For  oats :  from  9,875  acres  to  7,375  acres. 

For  sugar  beets :  from  622,500  acres  to  190,000  acres. 

At  the  same  time  our  sugar  factories  in  the  North  of 
France,  had  been  taken  away  from  us  at  the  beginning 
of  the  war,  the  number  of  our  sugar  factories  being  con- 
sequently reduced  to  64  out  of  a  total  of  206.  And  still 
the  output  was  not  decreasing. 

Owing  to  the  help  of  our  women,  of  our  children,  of  our 


THE  INTERNATIONAL  TRADE  CONFERENCE        339 

men  over  52  years,  who  were  not  called  to  the  trenches, 
the  tilled  land  remained  as  fertile  as  before  the  war,  and 
two  and  a  half  acres  (1  hectare)  gave  not  less  than  14!/2 
quintals,  in  1918,  against  13.3,  in  1913. 

As  to  oats,  conditions  without  being  unfavorable  are 
not  as  good  as  they  used  to  be  as  the  output  fell  from  13 
quintals  in  1913,  to  10  in  1918. 

On  the  other  hand,  2y2  acres  of  land,  cultivated  in  beet- 
root, gave  in  1918,  26  tons  against  24  in  1913. 

Our  reserves  of  meat  represented  by  our  cattle  were 
decreasing  at  the  same  time,  due  to  the  tremendous  con- 
sumption of  the  armies,  to  our  losses,  and  lack  of  labor. 

Consequently,  our  imports  increased,  for  fresh  or 
frozen  meat,  from  none  to  34,000  tons. 

For  salted  meat  from  550  to  48,000  tons. 

What  is  going  to  be  the  situation  in  the  years  to  come  ? 
Very  important  purchases  will  certainly  be  necessary.  It 
is  true  that  the  North  of  France  has  been  returned  to  us, 
but  we  have  to  render  fertile  again  the  devastated  area. 
Farms  must  be  rebuilt.  Labor,  machinery  and  fertilizers 
are  to  be  brought  forward,  and  this  work  of  reconstruc- 
tion, is  not  to  be  confined  to  the  devastated  area,  but  must 
be  extended  to  the  whole  of  France.  Fertilizers  must  be 
distributed  everywhere.  It  is  urgent  to  replace  by  agri- 
cultural machinery  the  lacking  labor  lost  by  hundreds  of 
thousands  for  the  defense  of  the  country,  and  the  liberty 
of  the  world. 

The  purchasing  campaign  of  1919-1920,  was  opened  in 
October,  1919,  for  the  year  1919-1920.  Our  provisions 
were  the  following: 

Wheat,  tons  4,000,000 

Oats,   tons   1,000,000 

Frozen   meat,   pounds •. 15,780,000 

Porkstuffs,   tons   150,000 

Preserves,  tons  20,000 

Sugar,  tons  500,000 

Condensed  milk,  tons  30,000 

Our  food  department  has  made  a  point  to  buy  from  the 
different  producers  on  the  most  advantageous  terms  in 
the  United  States,  in  Argentine,  Australia,  Roumania, 
Serbia,  Southern  Russia  and  Northern  Africa. 

Today  our  needs  are  covered  until  the  end  of  1919. 
But  we  have  still  to  buy  from  the  first  of  January,,  1920, 
to  the  first  of  October,  1920,  the  following  quantities : 


340        THE  INTERNATIONAL  TRADE  CONFERENCE 

Wheat,  tons  1,000,000 

Oats,    tons   200,000 

Sugar,  tons  100,000 

Condensed   milk,   cases 600,000 

Salted    meat,    tons 25,000 

Lard,  tons  25,000 

Ham,   tons   25,000 

Sausages,   tons   25..000 

These  different  items  amounting  approximately  to 
$145,540,000,  will  have  to  be  found  in  the  different  pro- 
ducing countries. 

In  closing,  I  want  to  express  a  few  words  of  hope  as 
regards  our  country. 

I  have  told  you  how  fertile  our  soil  was.  I  feel  con- 
fident that  before  long,  owing  to  the  work  of  reconstruc- 
tion, which  we  have  undertaken,  owing  to  the  develop- 
ment in  the  use  of  agricultural  machinery,  and  in  spite 
of  our  heavy  losses,  our  country  will  see  an  era  of  produc- 
tivity which  will  make  her  stronger  than  ever. 

ITALY. 

Meeting  held  October  21,  with  the  Italian  delegates  who 
were  represented  as  follows: 

PROF.  B.  ATTOLICO. 
V.  MENEGHELLI. 
G.  PIETRA. 
DR.  RUGGIERI. 

G.   VlTELLI. 

L.    SCARAMELLI. 

DR.  A.  BONASHI. 

During  the  informal  discussion,  Professor  Attolico, 
acting  as  spokesman,  reported  on  the  following  conditions 
existing  in  Italy:  The  greatest  requirement  is  wheat. 
Their  wheat  crop  was  less  than  last  year's  by  500,000 
tons.  Last  year,  they  imported  3,000,000  tons  of  cereals. 
Before  the  war  they  had  near  wheat  markets  in  Russia 
and  Roumania,  also  had  good  trade  connections  with  Ar- 
gentine. They  should  import  two-thirds  of  their  cereal 
requirements  from  the  United  States,  the  balance  from 
Argentine.  All  European  crops  are  short  this  year.  They 
will  need  considerable  meat  products,  canned  and  frozen. 

Last  year  they  had  meat  only  once  a  week.  During 
the  past  year  they  have  materially  replaced  their  herds 
of  cattle,  and  now  have  almost  as  many  as  before  the 


THE  INTERNATIONAL  TRADE  CONFERENCE        341 

war,  but  not  in  weight,  the  cattle  being  young,  and  it  will 
require  three  years  before  the  normal  weight  in  cattle 
will  be  completed. 

They  need  only  40,000  tons  of  sugar;  have  plenty  of 
fruit,  especially  in  South  Italy.  They  need  edible  oils. 
The  pressing  necessity  for  bread  products  is  emphasized 
by  their  statement,  that  they  cannot  import  their  needs 
in  cotton,  minerals,  coal,  etc.,  until  they  first  import  their 
wheat  requirements.  It  is  imperative,  that  they  have 
credit  in  buying  wheat.  They  can  buy  all  other  require- 
ments on  personal  credit.  They  need  mostly  winter  wheat 
for  the  manufacture  of  macaroni  and  paste.  They  claim 
to  be  the  only  country  that  adopted  the  war  bread  from 
the  beginning  of  the  war,  and  have  continued  to  do  so 
up  to  the  present  time.  Conditions  are  not  favorable  in 
trading  with  Argentine.  American  representatives  re- 
ported that  they  can  furnish  ample  canned  and  frozen 
meats. 

Italy  will  require  considerable  condensed  milk,  and  pre- 
fer the  sweetened  product,  but  may  not  be  able  to  obtain 
same  on  account  of  the  present  shortage  of  sugar.  They 
do  not  use  butter  substitutes,  and  do  not  obtain  edible  oils 
outside  of  the  United  States.  This  year's  olive  crop  is 
short.  They  could  barter  in  selling  olive  oil  for  cotton 
seed  oil  from  the  United  States.  They  need  long-time 
credits — from  one  to  five  years. 

They  formerly  exported  butter,  cheese  and  beans,  but 
now  must  import  same.  American  delegates  suggested 
the  group  credit  plan  on  the  part  of  the  Italian  mer- 
chants. Italy  could  increase  their  exports  of  mineral 
water,  tomato  catsup,  dried  fruits,  silks,  raisins,  grapes 
and  grape  juice,  marble,  linens  and  nuts.  The  war  in- 
terfered with  their  plans  of  increasing  sales  in  this  coun- 
try, but  a  movement  is  already  started  to  conduct  a  com- 
prehensive advertising  campaign  to  increase  the  sale  of 
their  products  in  this  country.  Mr.  Christian  Breish,  of 
Lansing,  Mich.,  stated  that  Italy  could  obtain  all  the 
beans  they  required  in  this  country,  and  that  the  proper 
credit  would  be  granted.  Their  rice  crop  is  equal  to  their 
home  consumption,  where  they  formerly  exported  this 
product. 

0.  J.  Moore,  Vice-President  of  the  National  Wholesale 
Grocers'  Association,  offered  the  cooperation  of  his  or- 
ganization in  introducing  in  this  country  the  Italian  food 
products. 


342        THE  INTERNATIONAL  TRADE  CONFERENCE 


ESTIMATE  OF  PURCHASES  BY  ITALY  FOM  UNITED 
STATES  OF  AMERICA  FOR  THE  SERIAL  YEAR 

1919  (Sept.  1)  1920  (August  31). 

Foodstuffs.  Tons.  Dollars. 

(000  omitted)    (000  omitted) 

Cereals  for  human  alimentation...  2,000  180,000 

Oats  and  substitutes 160  10,000 

Dry  pulses  12  1,920 

Frozen  meat  60  33,600 

Canned  meat  6  6,300 

Salmon    6  2,400 

Dry  fish  12  4,200 

Condensed  milk  6  2,400 

Animal  fats  and  swine  meats 48  36,000 

Butter  and   cheese 66  6,600 

Comestible  oils  9  4,950 

Sugar    40  7,000 

Fecules   1  250 

Miscellaneous  5  5,000 


Total     2,371  300,620 

Specifications  of  Different  Foodstuffs. 

Commercial  Bellies: 
12-25  average. 
Long  Cut  Hams : 

8-25  average. 
Fat  Backs : 

6-  8  average. 
8-10  average 
10-12  average. 
Condensed  Milk: 

(Packed  in  48  one-pound  tins  to  a  case). 
(Packed  also  in  48  14-ounce  tins  to  a  case) . 
Sweetened  condensed  milk,  sweetened  evaporated  milk, 
sweetened  concentrated  milk  is  the  product  result- 
ing from  the  evaporation  of  a  considerable  portion  of  the 
water  from  the  whole,  fresh,  clean  lacteal  secretion  ob- 
tained by  the  complete  milking  of  one  or  more  healthy 
cows,  properly  fed  and  kept,  excluding  that  obtained 
within  fifteen  days  before  and  ten  days  after  calving,  to 
which  sugar  (sucrose)  has  been  added.  It  contains,  all 
tolerances  being  allowed  for,  not  less  than  (28%)  twenty- 


THE  INTERNATIONAL  TRADE  CONFERENCE        343 

eight  per  cent,  of  total  milk  solids,  and  not  less  than  eight 

per  cent.  (8%)  of  milk  fat. 

Butter: 

(Packed  in  5  and  6  Ib.  tins)  88/90  score  quality. 
Cheese : 

(Strongly  seasoned.) 
Cottonseed  Oil: 

Combustible,  of  best  quality,  non-congealable,  suit- 
able for  mixture  with  olive  oil ;  deodorized. 

1.  Prime  Winter  Yellow  (deodorized). 

2.  Prime  Summer  Yellow  (deodorized). 
Packed  in  barrels  containing  not  less  than  360  pounds 

and  not  more  than  400  pounds  net  each. 
Peanut  Oil: 

Choice,  deodorized,  packed  in  tierces. 
Frozen  Beef: 

Commercial  trim  with  hanging  tender  and  breast- 
fats  removed ;  skirts  fairly  well  trimmed  with  kid- 
neys and  kidney  suet  left  in. 
1-Steers     3-Heifers 
2-Cows  4-Oxen 

Averages : 

450-500  Ibs. 
500-600  Ibs.  and  up 
Canned  Meats: 

Canned  Corned  Beef  12/6  Ib.  tins  to  a  case 

Lunch  Tongue  12/6  Ib.  tins  and  other  sizes 
Ox  Tongue  12/6  Ib.  tins  and  other  sizes 
Boiled  Beef  12/6  Ib.  tins  and  other  sizes 
Veal  Loaf  48/7  oz.  tins  and  other  sizes 
Beef  Loaf  12/6  Ib.  tins  and  other  sizes 
Salmon : 

Pink — 1  pound  tins,  48  tins  to  a  case 
Chum — 1  pound  tins,  48  tins  to  a  case 
Dry  Fishes: 

Codfish — Packed  in  448-pound  drums  (dry)  also  560 

pound  drums  (soft  cured). 
Haddock 
Pollock 
Hake 
Dry  Salt  Meats: 

Packed  in  boxes  containing  5/600  Ibs.  net  each  in  70- 

Ibs.  salt. 
Dry  Salt  Fat  Backs  : 

8-10  pound  average 
10-12  pound  average 
12-14  pound  average 


344        THE  INTERNATIONAL  TRADE  CONFERENCE 

14-16  pound  average 

16-18  pound  average 
Dry  Salt  Bellies: 

20-25  pound  average 

25-30  pound  average 

30-35  pound  average 

American  Cut  Hams,  Dry  Salt  Cure,  Unsmoked : 
8-10  pound  average 

10-12  pound  average 

12-14  pound  average 

14-16  pound  average 

16-18  pound  average 

18-20  pound  average 

20-24  pound  average 
Square  Cut  Bellies: 

12-25  pound  average 

12-30  pound  average 

AMERICAN. 

The  American  Committee  met  October  21,  and  Chair- 
man Whitmarsh  appointed  a  Resolution  Committee  as 
follows : 

DR.  VERNON  KELLOGG. 
E.  B.  DEMING. 
C.  H.  BENTLEY. 
HON.  HENRY  STUART. 

A  motion  made  by  C.  H.  Bentley  was  adopted,  to  the 
effect  that  the  Resolution  Committee  draw  up  a  report 
and  resolutions  to  be  submitted  to  the  General  Resolution 
Committee,  regarding  the  needs  of  France  and  Italy,  and 
the  necessity  of  extending  credit  to  them  in  the  purchases 
of  their  grain  requirements. 

THE  FOOD  COMMITTEE  MEETING,  OCTOBER  22, 

1919. 
GREAT  BRITAIN. 

At  a  meeting  this  morning  with  the  British  delegates, 
the  following  gentlemen  represented  that  committee : 

HON.  J.  G.  JENKINS. 
BAILIE  JOHN  KING. 


THE  INTERNATIONAL  TRADE  CONFERENCE        345 

During  the  informal  discussion,  the  English  representa- 
tives submitted  the  following  facts :  :, 

The  English  people  are  under  a  rationing  system  the 
same  as  during  the  war,  and  mentioned,  incidentally,  that 
they  received  as  much  butter  at  one  meal  in  this  country 
as  their  total  week's  allowance.  They  have  an  ample 
stock  of  grain  in  Australia  and  New  Zealand,  but  lack 
of  transportation  facilities  has  prevented  the  shipment 
of  same.  This  situation,,  however,  will  improve  next  year. 
They  reported  that  considerable  food  has  deteriorated  in 
the  change  of  shipping  or  improper  storage  facilities  at 
certain  ports.  They  have  conducted  a  vigorous  campaign 
against  speculation  and  hoarding  of  food,  and  are  dealing 
with  this  situation  in  a  satisfactory  manner.  Before  the 
war  they  received  their  sugar  requirements  from  Ger- 
many and  Austria,  which,  of  course,  is  not  available  now, 
hence  must  obtain  their  supply  elsewhere.  Australia  now 
has  some  sugar  to  export. 

Before  the  war,  England  imported  four-fifths  of  its 
food  products ;  now  as  a  result  of  intensified  farming  and 
their  rationing  system,  are  growing  three-fourths  of  their 
food  requirements.  They  have  very  little  milk,  and  cream 
cannot  be  purchased.  They  are  allowed  one  ounce  of  but- 
ter per  capita  per  week.  They  are  operating  under  the 
rationing  system,  and  every  consumer  must  register  and 
give  a  list  of  the  dealers  they  purchased  their  supplies 
from.  One  of  the  principal  reasons  for  continuing  the 
rationing  system  is  the  fear  of  strikes  and  lack  of  trans- 
portation facilities.  Their  grain  crop  is  less  than  last 
year.  However,  their  colonies  have  larger  wheat  crops 
this  year.  They  will  not  be  able  to  buy  from  European 
countries  on  account  of  general  economic  conditions, 
hence  they  are  compelled  to  buy  of  their  colonies  and  the 
United  States.  They  are  large  users  of  condensed  milk, 
and  will  need  more  on  account  of  the  great  increase  in  the 
cost  of  fresh  milk.  The  demand  for  meat  will  continue, 
requiring  about  the  same  as  before  the  war.  Canned 
goods  are  increasing  in  demand.  The  home  demand  for 
fish  is  being  supplied;  later  on  they  can  export.  They 
will  continue  to  need  the  edible  oils  as  in  the  past.  They 
use  some  rice  which  they  can  obtain  from  Eastern 
colonies. 

Following  the  conference  with  the  British  delegation, 
the  Food  Committee  then  discussed  the  details  of  the  re- 


346        THE  INTERNATIONAL  TRADE  CONFERENCE 

ports  and  resolutions  to  be  submitted.  A  motion  made 
by  Mr.  Bentley,  that  the  following  resolutions  be  adopted, 
was  carried.  The  committee  also  thanked  the  Chairman, 
Vice  Chairman  and  Secretary  for  the  interest  that  they 
manifested  in  the  meetings. 

REPORT  OF  COMMITTEE. 

Your  special  Committee  on  Foodstuffs,  with  twenty- 
four  attending  members  out  of  twenty-seven  appointed, 
representing  in  their  interests  a  wide  variety  of  American 
nature  foods,  and  prepared  products,  and  coming  from 
all  over  the  country  from  the  Pacific  to  the  Atlantic  Coast, 
has  held  meetings  with  the  appointed  representatives  of 
each  of  the  foreign  missions. 

At  these  meetings,  the  food  situation,  as  to  the  present 
and  for  the  coming  year,  of  Belgium,  France,  Italy  and 
Great  Britain,  and  the  disastrous  results  on  each  of  these 
countries  on  the  food  conditions,  especially  in  the  way  of 
lessened  production  and  restricted  importations,  produced 
by  the  war,  and  the  efforts  being  made  in  each  country 
to  meet  and  remedy  those  conditions  by  controlled  food 
use  and  stimulation  of  production,  together  with  detailed 
statistical  statements  of  the  food  importations  needed  by 
each  of  these  countries  during  the  period  until  the  har- 
vests of  1920,  especially  the  needed  importations  from  the 
United  States,  have  all  been  presented  and  fully  discussed. 

From  the  lists  made  by  the  foreign  representatives  of 
their  needs  of  food  importation  from  America,  and  the 
statements  made  in  the  discussions  of  these  lists  by  the 
American  committee  members,  representing  the  produc- 
tion and  handling  of  all  these  various  foodstuffs  desired 
by  the  European  countries,  it  is  apparent  that  there 
exists,  or  will  be  produced  during  the  period  voted,  a  suf- 
ficient American  surplus  to  provide  practically  all  the 
foodstuffs  listed,  in  the  quantities  asked  for. 

But,  it  is  also  apparent  that  the  governments  and 
buyers  of  the  foreign  countries  are  forced  with  certain 
serious  difficulties  in  the  financing  of  their  purchases  from 
the  United  States,  the  chief  of  which  is  the  matter  of  the 
exchange  rates,  which,  at  present,  are  greatly  to  the  dis- 
advantage of  the  foreign  purchasers. 

The  principal  remedies  suggested  for  meeting  this  ma- 
jor difficulty  were  two:  One,  especially  made  by  the 
foreign  representatives,  is  the  extension  of  long-term 
credits  by  American  sellers  to  the  European  purchasers. 


THE  INTERNATIONAL  TRADE  CONFERENCE        347 

The  other,  especially  made  by  the  American  committee 
members,  is  the  high  desirability  of  increased  exportation 
from  the  foreign  countries  to  America  of  any  and  all  of 
their  own  special  products  suitable  for  the  American 
trade.  A  most  sympathetic  attitude  toward  both  of  these 
matters  was  exhibited  by  the  committee  members,  and 
various  practical  suggestions  were  made  by  gentlemen  of 
the  committee  looking  toward  the  realization  of  these 
remedies. 

In  connection  with  the  matter  of  increasing  the  Ainer- 
ican  use  of  the  special  food  products,  which  could  be  pro- 
vided by  the  European  countries,  it  was  especially  sug- 
gested that  the  foreign  sellers  would  attempt  a  wider  and 
more  general  distribution  of  their  products  in  America, 
and  in  particular  should  arrange  to  avail  themselves  of 
the  already  existing  American  trade  organizations  and 
domestic  system  for  exploitation  and  distribution.  It 
was  stated  by  various  gentlemen  of  the  committee,  rep- 
resenting certain  large  American  food  trades,  that  there 
undoubtedly  exists  great  possibilities  in  the  way  of  ex- 
tending in  this  country,  particularly  at  present,  the  use 
of  many  high  grade  special  food  products  of  the  Euro- 
pean countries  represented  at  the  Conference. 

In  connection  with  the  matter  of  the  need  for  special 
temporary  credit  arrangements  for  the  European  pur- 
chasers, the  Committee,  being  particularly  impressed  by 
the  peculiar  needs  of  the  countries  associated  with  us 
in  the  war,  for  the  importation  from  the  United  States 
of  large  quantities  of  cereals,  both  for  human  consump- 
tion and  for  the  rehabilitation  of  their  national  herds, 
suggests  to  the  Executive  Committee  that  sympathetic 
consideration  be  given  to  the  idea  of  making  recommen- 
dations to  the  President  in  this  matter.  It  may  be  appro- 
priate to  suggest  that  as  a  matter  both  of  wise  public 
policy  and  of  an  extension  of  our  humanitarian  efforts 
which  cannot  entirely  cease  with  the  ending  of  the  war  if 
our  voluntarily  accepted  obligations  to  our  associates  are 
to  be  fully  met — the  President  should  exercise  his  au- 
thority under  the  Food  Control  Act  to  the  end  of  making 
special  arrangements  to  provide  these  needed  cereals  in 
such  quantities  and  on  such  terms  of  credit  as  may  seem 
to  him  wise  and  safe. 

It  is  fully  realized  by  your  Committee  on  Foodstuffs 
that  the  matter  of  finance  and  credit  is  the  particular 
province  of  a  special  committee  on  those  matters.  But 
the  conferences  of  the  Foodstuffs  Committee  with  the 
foreign  missions  have  developed  so  clearly  the  fact  that 


348        THE  INTERNATIONAL  TRADE  CONFERENCE 

the  only  serious  difficulty  both  in  the  full  meeting  of  the 
absolute  food  needs  of  our  associates  in  war  and  in  the 
development  of  a  desirable  foreign  market  for  the  Amer- 
ican food  supplies  created  by  the  stimulated  production 
due  to  the  war  situation,  and  of  any  surplus  that  may 
be  continued  to  be  created,  is  that  of  a  satisfactory  ar- 
rangement for  a  temporary  unusually  sympathetic  treat- 
ment of  the  foreign  buyers  as  regards  finance  and 
credit  that  your  Committee  is  constrained  to  make  as  a 
special  recommendation  to  you  the  high  desirability  of  a 
strong  effort  to  effect  such  an  arrangement. 

Your  committee  has  been  strongly  impressed  by  the 
great  mutual  advantage  that  can  accrue  to  America  and 
to  the  European  countries  by  a  continuation  of  such  con- 
ferences as  the  present  and  strongly  recommends  that 
some  form  of  permanent  international  organization  be 
effected  which  will  insure  this  continuation. 

In  concluding  this  brief  report,  your  Committee  wishes 
to  express  through  you  to  the  foreign  missions,  its  ap- 
preciation of  their  full  and  frank  statements  regarding 
the  food  situation  in  their  respective  countries,  and  the 
pleasure  of  the  members  of  the  committee  in  having  had 
the  opportunity  of  an  enlightening  personal  contact  with 
the  distinguished  representatives  of  those  countries  will 
be  held  in  especial  sympathetic  memory  by  us,  as  having 
been  associated  with  our  own  country  in  the  successful 
prosecution  of  a  righteous  war  for  liberty  and  humanity. 

(Signed)     VERNON  KELLOGG,  Chairman, 
C.  H.  BENTLEY, 
E.  B.  DEMING. 
HENRY  STUART. 


COMMITTEES  ON  METALS. 
BELGIUM. 

M.  CANON-LEGRAND. 
M.  NEVE. 
M.  HANKAR. 
M.  DE  GROOTE. 

FRANCE. 

M.  DE  FREMINVILLE. 
M.  PESSON-DIDION. 


THE  INTERNATIONAL  TRADE  CONFERENCE        349 

M.  BARON  DU  MARAIS. 
M.  ANDRE  HOMBERG. 
M.  LOIZEAU. 
M.  MAURICE  BOYER. 
M.  TIRMAN. 

M.  DOLLEANS. 

GREAT  BRITAIN. 

BAILIE  JOHN  KING. 
SIR  ARTHUR  SHIRLEY  BENN. 
SIR  JAMES  HOPE  SIMPSON. 
MR.  MARSHALL  STEVENS. 
HON.  J.  G.  JENKINS. 
MR.  FRANK  MOORE. 

ITALY. 

L.  LUIGGI. 

F.  QUATTRONE. 

G.  B.  CECCATO. 
M.  LUIGGI,  JR. 
A.  PALANCA. 

V.  E.  SILVESTRI. 
E.  FLORES. 
P.  TUCCIMEI. 
M.  MIOZZI. 

AMERICA. 

E.  A.  S.  CLARKE,  Chairman; 
President,  Consolidated  Steel  Corporation,  New  York  City. 

O.  K.  DAVIS,  Vice-Chairman  and  Secretary; 
Secretary,  National  Foreign  Trade  Council,  New  York  City. 

GEORGE  H.  MOSELEY,  Assistant  Secretary, 
Chamber  of  Commerce  of  the  United  States,  Otis  Building, 

Chicago,  111. 

BOSTWICK,  W.  A.,  President,  International  Nickel  Co.,  New  York 
City. 

BUTTERWORTH,  WILLIAM,  President,  Deere  &  Co.,  Moline,  111. 

CARLTON,  A.  E.,  Mining  Engineer,  Colorado  Springs,  Colo. 

CORNISH,  E.  J.,  President,  National  Lead  Co.,  New  York  City. 

CRANWELL,  THOMAS  G.,  President,  Continental  Can  Co.,  Inc.,  Syra- 
cuse, N.  Y. 

DOUGLAS,  WALTER,  President,  Phelps-Dodge  Corporation,  New 
York  City. 

ELTON,  JOHN  P.,  Vice-President,  American  Brass  Co.,  Waterbury, 
Conn. 


350        THE  INTERNATIONAL  TRADE  CONFERENCE 

JONES,  B.  F.,  JR.,  President,  Jones  &  Laughlin   Steel  Co.,  Pitts- 
burgh, Pa. 

LEITH,  C.  K.,  Madison,  Wis. 

O'LEARY,  JOHN  W.,  Vice-President,  Chicago  Trust  Co.,  Chicago,  111. 
PALMER,  EDGAR,  President,  New  Jersey  Zinc  Co.,  New  Y,ork  City. 
PEEK,  GEORGE  N.,  President,  Moline  Plow  Co.,  Moline,  111. 
THOMAS,  EUGENE  P.,  U.  S.  Steel  Products  Corporation,  Moline,  111. 
YEATMAN,  POPE,  Mining  Engineer,  New  York  City. 

ITALY. 

The  Committee  on  Metals  met  with  the  Italian  Dele- 
gation in  Room  526,  Hotel  Traymore,  at  2.15  P.  M.,  Tues- 
day, October  21,  1919  . 

Upon  roll-call  the  following  persons  were  present: 

For  Italy. 

L.  LUIGGI. 
M.  LUIGGI,  JR. 
P.  TUCCIMEI. 
M.  PALANCA. 

For  the  Committee. 

E.  A.  S.  CLARKE,  Chairman. 

O.  K.  DAVIS,  Secretary. 

G.  H.  MOSELEY,  Assistant  Secretary. 

GEO.  N.  PEEK. 

EDGAR  PALMER. 

E.  J.  CORNISH. 

POPE  YEATMAN. 

WALTER  DOUGLAS. 

EUGENE  P.  THOMAS. 

A.  E.  CARLTON. 

Conferees  and  Advisors. 

GEO.  E.  RICE. 
H.  C.  MORRIS. 
L.  C.  GRATON. 
GUY  C.  RIDDELL. 
JOHN  HUGHES. 
PEMBERTON  SMITH. 
FRED  C.  COTTRELL. 
E.  S.  BASTIN. 


THE  INTERNATIONAL  TRADE  CONFERENCE        351 

C.   E.   SlEBENTHAL. 

WALTER  TOWER. 
MR.  HUNTINGTON. 
L.  C.  WELLS. 

L.  Luiggi,  spoke  for  the  Italian  delegation,  stating  that 
the  annual  requirements  for  the  metal  industries  in  Italy 
during  the  next  five  years  could  be  summarized  as  fol- 
lows: 

Tons. 

Pig  iron 200,000 

Plates  and  shapes 60,000 

Ingots,    semi-finished 

Steel  and  rail 215,000 

Scrap  iron  100,000 Eventually   in    case    all 

Tin  flats  5,000    the    pig    iron     and     semi- 
Copper    15,000    finished  steel  could  not  be 

Various  metals  10,000    got. 


Total   605,000 

These  are  minimum  figures  and  requirements  for  our 
own  needs.  This  will  enable  us  to  give  employment  to 
available  labor,  which  is  necessary  to  keep  labor  satisfied, 
rebuild  and  extend  the  railways  of  the  country  which  need 
repair,  reconstruct  bridges,  and  complete  their  shipbuild- 
ing program  to  increase  and  replace  the  enormous  ton- 
nage destroyed  during  the  war. 

Prior  to  the  war  Italy  consumed  about  2,000,000  tons 
of  iron  and  steel,  about  500,000  tons  came  from  Eng- 
land, Germany  and  Austria.  The  rest  was  made  in  Italy. 
Now  they  would  like  the  500,000  tons  to  come  from 
American  markets  to  meet  their  needs. 

Italy  has  established  shipyards,  has  abundant  labor, 
and  can  produce  ships  under  favorable  conditions.  Also, 
with  a  supply  of  raw  materials  could  to  advantage  con- 
struct machinery  and  parts  for  American  manufacturers. 

The  metals  required  will  be  used  mostly  in  shipbuild- 
ing, in  agricultural  implements,  machinery  for  cotton  and 
silk  mills,  rails  for  new  lines,  and  repairs,  tin  plates  for 
developing  canned  goods  industry,  copper  for  electrical 
equipment  and  future  development  of  electric  railways. 


352        THE  INTERNATIONAL  TRADE  CONFERENCE 

Italy  has  great  quantities  of  lead,  quicksilver,  and 
borax  for  export.  Other  products  for  export  are  marble, 
sulphur,  citrus  fruits,  laces,  paintings,  statuary,  carpets, 
china,  olive  oil  and  cheese. 

The  building  industry  will  also  require  some  quantity 
of  steel. 

The  development  of  the  water  power  of  the  country 
is  contemplated  for  the  future  when  it  is  desired  to  elec- 
trify the  transportation  systems  throughout  the  country 
and  effect  a  conservation  of  coal. 

Electric  furnaces  have  been  installed  and  operated 
which  produce  a  superior  grade  of  steel,  equal  to  that  pro- 
duced in  other  countries. 

The  social  conditions  may  be  said  to  be  stable,  and  no 
danger  of  socialism  or  bolshevism  as  long  as  the  inhabi- 
tants are  able  to  secure  food. 

The  government  may  be  said  to  foster  the  electrifica- 
tion of  railways,  drainage  of  lands  by  means  of  pumps, 
irrigation,  etc.,,  and  American  capital  would  be  quite 
welcome. 

It  was  hoped  that  amicable  relations  could  be  estab- 
lished whereby  Italy  could  secure  the  metals  necessary, 
not  only  for  the  present  immediate  necessities,  but  estab- 
lish a  trade  that  would  extend  to  the  future  and  that 
would  likewise  find  a  market  in  America  for  many  of  the 
products  of  their  country  which  they  are  able  to  supply 
in  abundance. 

FRANCE. 

The  Committee  on  Metals  met  with  the  French  Delega- 
tion in  Room  No.  526,  Hotel  Traymore,  at  2.15  P.  M., 
Monday,  October  20,  1919. 

Upon  roll  call  the  following  persons  were  present: 

For  France. 

M.  DE  FREMINVILLE. 
M.  PESSON-DIDION. 
M.  BARON  DU  MARAIS. 
M.  LOIZEAU. 


THE  INTERNATIONAL  TRADE  CONFERENCE        353 

M.  MAURICE  BOYER. 
M.  TIRMAN. 

M.   DOLLEANS. 

For  the  Committee. 

E.  A.  S.  CLARKE,  Chairman. 

0.  K.  DAVIS,  Secretary. 

G.  H.  MOSELEY,  Assistant  Secretary. 

WILLIAM  BUTTERWORTH. 

A.  E.  CARLTON. 

E.  J.  CORNISH. 

WALTER  DOUGLAS. 

EDGAR  PALMER. 

GEORGE  E.  PEEK. 

Representatives  from  the  United  States  Government, 
Advisors  and  Councillors. 

GEO.  F.  RICE,  Chief  Mining  Engineer. 

H.  C.  MORRIS,  Mining  Engineer. 

FRED  G.  COTTRELL,  Assistant  Director,  Bureau  of  Mines. 

E.  S.  BASTIN,  U.  S.  Geological  Survey. 

C.  E.  SIEBENTHAL,  U.  S.  Geological  Survey. 

L.  C.  GRATON,  Mining  Tax  Division  Internal  Revenue. 

GUY  C.  RIDDELL. 

JOHN  HUGHES,  U.  S.  Steel  Corporation. 

WALTER  TOWER,  Consolidated  Steel  Corporation. 

PEMBERTON  SMITH. 

MR.  HUNTINGTON,  Department  of  State. 

L.  C.  WELLS,  Department  of  State. 

The  French  Mission  stated  that  prior  to  the  war  their 
consumption  was  about  120,000  tons  of  copper — imports 
94,000  tons,  and  exports  30,000  tons.  Their  annual  re- 
quirements for  the  present  are  now  estimated  at  90,000 
tons  of  copper,  to  be  furnished  in  the  form  of  bars,,  ingots 
and  electrolytic  copper,  this  quantity  to  be  used  entirely 
for  home  consumption,  and  not  in  any  way  for  export. 
On  account  of  the  enormous  demand  for  war  material 
the  foundries  of  France  were  encouraged  by  the  Govern- 
ment to  increase  the  number  of  plants  and  production. 
Today  their  requirements  are  for  the  material  to  keep  up 
the  capacity  of  these  plants. 


354        THE  INTERNATIONAL  TRADE  CONFERENCE 

The  estimates  for  copper  will  undoubtedly  vary  owing 
to  salvage  from  war  material  and  the  use  of  other  ma- 
terials in  connection  with  copper.  Proposed  construction 
of  electric  railways,  and  power  lines,  are  under  discus- 
sion, and  should  this  develop,  it  will  increase  the  demand 
for  these  materials  to  some  extent.  No  definite  state- 
ment of  the  extra  requirements  can  be  made  at  this  time. 

The  requirements  for  ship  plates  for  hull  construction 
is  estimated  to  be  about  100,000  tons  up  to  the  end  of 
1920.  These  ship  plates  are  to  be  used  in  the  shipyards 
of  France  for  the  building  of  a  merchant  marine  which 
has  suffered  severely  by  the  war.  Before  the  war  France 
built  200,000  new  tonnage  every  year. 

The  delegation  wished  information  regarding  modern 
methods  of  shipbuilding,  particularly  electric  welding 
and  riveting.  Opportunity  for  visiting  various  plants 
was  offered  to  secure  the  information  desired. 

It  was  thought  that  the  adoption  of  the  American  or 
Lloyd's  standard  for  testing  and  measuring  steel  would 
be  of  great  advantage  in  dealing  with  France  on  these 
materials;  that  the  method  of  testing  materials  should 
be  standardized,  and  in  reference  to  this  matter  it  was 
suggested  that  the  report  of  the  United  States  Bureau 
of  Standards  be  consulted. 

It  was  quite  evident  that  France  devoted  her  entire 
energies  to  wrinning  the  war,  and  that  is  quite  well  illus- 
trated in  the  statement  of  the  increased  number  of  blast 
furnaces,  and  the  fact  that  their  tonnage  in  pig  iron  was 
increased  during  the  war  to  600,000  tons  and  in  steel  to 
1,500,000  tons  annually. 

Material  available  for  export  from  France  would  be 
manufactured  cotton  goods,  vegetable  oils,  silk  products 
and  chemicals. 

As  to  the  industrial  situation  in  France  there  is  no 
idle  labor.  A  large  portion  of  those  engaged  in  war  and 
war  work  have  returned  to  their  farms.  Labor  condi- 
tions may  be  said  to  be  favorable.  Strikes,  generally 
speaking,  to  no  extent  have  materially  effected  produc- 
tion. 


THE  INTERNATIONAL  TRADE  CONFERENCE        355 

The  peasants,  who  form  more  than  fifty  per  cent  of  the 
population,  are  small  landowners  and  have  largely  re- 
turned to  their  occupation  of  tilling  the  soil. 

The  factory  workers  are  better  classed  as  artisans  in 
their  trades  than  what  we  would  term  common  labor  in 
this  country. 

The  close  cooperation  between  the  French  and  Ameri- 
can governments  would  be  quite  welcome,  with  cooper- 
ation in  the  interest  of  business  between  these  nations. 

It  is  approximately  estimated  that  France  furnished 
the  Allies,  in  the  form  of  war  materials,  with  products 
amounting  in  value  to  about  $8,000,000  up  to  the  time  of 
the  signing  of  the  armistice.  A  large  part  of  this  ma- 
terial furnished  was  from  the  commercial  resources  of 
France. 

GREAT  BRITAIN. 

The  Committee  on  Metals  met  with  representatives  of 
Great  Britain  in  Room  526,  Hotel  Traymore,  at  10  A.  M., 
October  21,.  1919. 

Upon  roll-call  the  following  persons  were  present : 

Representing  Great  Britain. 

BAILIE  JOHN  KING. 
MR.  MARSHALL  STEVENS. 
HON.  J.  G.  JENKINS. 

For  the  Committee. 

E.  A.  S.  CLARKE,  Chairman. 

O.  K.  DAVIS,  Secretary. 

G.  H.  MOSELEY,  Assistant  Secretary. 

WILLIAM  BUTTERWORTH. 

GEO.  N.  PEEK. 

EDGAR  PALMER. 

E.  J.  CORNISH. 

POPE  YEATMAN. 

WALTER  DOUGLAS. 

EUGENE  P.  THOMAS. 

A.  E.  CARLTON. 


356        THE  INTERNATIONAL  TRADE  CONFERENCE 
Conferees  and  Advisors. 

GEO.  E.  RICE. 
H.  C.  MORRIS. 
FRED  C.  COTTRELL. 
E.  S.  BASTIN. 

C.   E.   SlEBENTHAL. 

L.  C.  GRATON. 
GUY  C.  RIDDELL. 
JOHN  HUGHES. 
WALTER  TOWER. 
MR.  HUNTINGTON. 
L.  C.  WELLS. 
PEMBERTON  SMITH. 

Representatives  from  Great  Britain  advised  that  their 
immediate  requirements  for  home  consumption  of  metals 
would  not  necessitate  to  any  great  extent  the  importa- 
tion of  metals  from  the  United  States,  that  through  their 
colonies  and  otherwise  they  would  be  able  to  secure  such 
materials  as  are  necessary. 

To  meet  the  problems  of  restoring  the  devastated  coun- 
tries of  Europe  in  the  form  of  manufactured  products, 
would  necessitate  negotiations  for  purchases  of  metals 
to  that  extent. 

The  delegation  was  favorable  to  creating  a  permanent 
organization,  through  the  machinery  of  which  could  be 
worked  out  the  problems  of  an  equitable  distribution  of 
materials  on  a  reciprocal  basis. 

Considerable  discussion  of  a  general  nature  was  had 
relative  to  the  needs  for  conservation  of  transportation, 
coal  supply,  as  affecting  metal  industries,  and  labor  condi- 
tions. 

No  definite  data  as  to  requirements  in  metals  was 
given.  The  general  opinion  was  that  exports  in  metals 
such  as  can  be  supplied  from  the  United  States,  should 
be  made  to  the  countries  of  Great  Britain,  France,  Italy 
and  Belgium,  to  be  used  by  them  in  the  manufacture  of 
such  articles  as  are  necessary  to  reconstruct  and  to  dis- 
tribute to  the  nearby  countries,  at  least  until  the  time 
when  their  own  plants  are  in  operation. 


THE  INTERNATIONAL  TRADE  CONFERENCE        357 

BELGIUM. 

The  Committee  on  Metals  met  with  the  Belgian  Mission 
at  Room  526,  Hotel  Traymore,  at  2  P.  M.,  Wednesday, 
October  22,  1919. 

Those  present  were: 

For  Belgium. 

M.  CANON-LEGRAND. 
M.  NEVE. 
M.  HANKAR. 
M.  DE  GROOTE. 

For  the  Committee. 

E.  A.  S.  CLARKE,  Chairman. 

O.  K.  DAVIS,  Secretary. 

G.  H.  MOSELEY,  Assistant  Secretary. 

WM.  BUTTERWORTH. 

WALTER  DOUGLAS. 

GEO.  N.  PEEK. 

E.  J.  CORNISH. 

EDGAR  PALMER. 

E.  P.  THOMAS. 

POPE  YEATMAN. 

Advisors  and  Councillors. 

C.  E.   SlEBENTHAL. 

L.  C.  GRATON. 
GUY  C.  RIDDELL. 
JOHN  HUGHES. 
WALTER  TOWER. 
L.  C.  WELLS. 
PEMBERTON  SMITH. 

Belgium's  needs  in  metals  are  particularly  steel  billets, 
American  markets  would  be  open  to  this  trade  provided 
freight  rates  and  prices  were  right.  The  chairman  stated 
that  no  doubt  these  matters  could  be  arranged  satisfac- 
torily to  meet  the  prices  now  being  secured  from  Ger- 
many and  Lorraine.  No  definite  estimates  as  to  needs 
was  stated. 

Belgium  has  twelve  blast  furnaces  now  operating,  and 
it  is  hoped  to  double  the  number  during  the  next  year. 


358        THE  INTERNATIONAL  TRADE  CONFERENCE 

Under  normal  conditions  the  output  of  steel  in  Belgium 
is  more  than  enough  for  home  consumption  and  provides 
an  excess  for  export.  The  curtailing  of  building  and 
high  prices  for  labor  have  tended  to  still  further  reduce 
the  need  for  steel  so  that  it  is  difficult  to  estimate  present 
needs.  However,  such  metals  as  are  necessary  it  was 
thought  could  be  purchased  by  individual  negotiations. 

There  is  no  immediate  need  for  other  metals,  at  least 
the  representatives  had  nothing  of  any  quantity  in  mind. 

REPORT  OF  COMMITTEE. 

The  Committee  on  Metals  reports  that  it  has  had  full 
and  free  consultation  with  the  Committees  on  Metals 
representing  the  Belgian,  British,  French  and  Italian 
Commissions,  at  which  the  situation  in  all  these  countries 
with  reference  to  their  needs  for  supplies  of  metals  in 
order  to  effect  the  re-establishment  of  their  industries 
was  fully  presented  and  freely  discussed. 

In  general  the  reports  showed  a  greater  stability  of 
labor  conditions  and  less  menace  from  social  unrest  than 
previous  public  information  had  indicated.  These  discus- 
sions also  showed  that  the  prospect  for  the  complete  re- 
establishment  of  industry  in  those  countries  is  decidedly 
hopeful,  provided  supplies  of  raw  materials  and  goods  can 
be  secured.  So  far  as  metals  are  concerned  it  was  dis- 
closed that  the  requirements  for  France  for  the  ensuing 
year  are  estimated  at  100,000  tons  of  ship  plates  and 
90,000  to  100,000  tons  of  copper. 

The  estimates  of  their  requirements  submitted  by  the 
Italian  Committee  included  the  following  annual  quan- 
tities over  the  next  five  years : 

Tons. 

Foundry  pig  iron 200,000 

Plates   and    shapes 60,000 

Ingots  and  semi-finished  steel  and  rails 215,000 

Scrap  iron  100,000 

Tin  plates  5,000 

Copper   15,000 

Various  other  metals 10,000 


Total    605,000 

There  are  under  consideration  in  France  and  Italy 


THE  INTERNATIONAL  TRADE  CONFERENCE        359 

plans  for  extensive  electrification  of  railways,,  which,  if 
put  into  operation,  will  require  considerable  additional 
supplies  of  copper  over  those  stated. 

The  Belgian  requirements  are  limited  to  semi-finished 
steel  and  copper  sheets,  but  the  determination  of  approx- 
imate quantities  needed  is  so  dependent  upon  the  rate  of 
restoration  of  the  Belgian  works  and  the  supply  of  neces- 
sary fuel  as  to  prevent  for  the  present  the  making  of 
definite  estimates. 

The  meeting  with  the  British  Delegation  developed  the 
fact  that  no  specific  requirements  have  been  formulated, 
and  that  Great  Britain  expects  to  be  able  to  obtain  all 
the  supplies  of  raw  materials  necessary  for  her  normal 
trade,  without  any  special  arrangements  therefor.  The 
British  Chairman  stated:  "The  object  of  America  and 
Great  Britain  ought  to  be  how  best  to  utilize  their  out- 
puts for  the  benefit  of  the  devastated  areas.  Great 
Britain  has  already  sent  considerable  consignments  to  the 
continent  in  the  way  of  metal  goods  for  reconstruction 
purposes.  We  expect  not  only  to  be  able  to  continue  this, 
but  also  to  increase  the  quantities." 

Consideration  of  the  situation  presented  by  the  French, 
Italian  and  Belgian  Committees  disclosed  the  fact  that  the 
American  industries  either  have,  or  are  capable  of  pro- 
ducing surpluses  adequate  to  meet  these  requirements, 
provided  satisfactory  and  effective  means  of  financing  the 
transactions  involved  are  arranged.  While  to  a  certain 
degree  and  in  some  lines  the  American  industry  would 
be  able  to  take  care  of  a  part  of  these  requirements  in 
normal  commercial  transactions,  the  aggregate  of  these 
requirements  involving  long  credits  is  so  large  that,  in 
the  opinion  of  the  Committee  on  Metals,  some  special 
financial  machinery  must  be  arranged  in  order  to  enable 
the  satisfactory  fulfilment  of  these  requirements.  In 
view  of  the  fact  that  filling  these  requirements  presents  a 
problem  beyond  the  scope  of  the  normal  financial  ma- 
chinery, it  is  the  judgment  of  the  Committee  on  Metals 
that  some  emergency  legislation  such  as  is  contemplated 
by  the  Edge-Ackerman  Bill  now  before  the  Congress  in 
Washington,  should  be  enacted.  The  utilization  of  such 
emergency  facilities  for  financing  exports  would  enable 
the  American  metals  industries  to  meet  Belgian,  French 
and  Italian  requirements  with  the  greatest  possible  dis- 
patch and  so  contribute  to  the  most  prompt  restoration 
of  normal  conditions  in  Europe. 

E.  A.  S.  CLARKE,  Chairman. 


360        THE  INTERNATIONAL  TRADE  CONFERENCE 

COMMITTEES  ON  PETROLEUM. 
BELGIUM. 

M.  NEVE. 
M.  HANKAR. 
M.  DE  GROOTE. 

FRANCE. 

M.  DE  PELLERIN  DE  LA  TOUCHE. 

M.  PARMENTIER. 

M.  PONCET. 

M.  INGOUF. 

M.  DE  FREMINVILLE. 

M.  PESSON-DIDION. 

M.  ROCHE. 

ITALY. 

F.  QUARTIERI. 

A.  PALANCA. 
T.  THEODOLI. 

G.  RICCI. 

AMERICA. 

W.  C.  TEAGLE,  Chairman; 
President,  Standard  Oil  Co.  of  New  Jersey,  New  York  City. 

C.  C.  SMITH,  Vice-Chairman  and  Secretary; 
Assistant   Sec'y*  American   Petroleum   Institute,  New  York  City, 

HARRY  O.  PATTON,  Assistant  Secretary, 
Chamber  of  Commerce  of  the  United  States,  New  York  City. 

DAVIDSON,  GEORGE  S.,  President,  Gulf  Refining  Co.  of  Louisiana. 

Pittsburgh,  Pa. 
DOHENY,  E.  L.,  President,  Mexican  Petroleum  Company,  New  York 

City. 

LUCEY,  CAPT.  J.  F.,  Lucey  Manufacturing  Co.,  New  York  City. 
LUFKIN,  E.  C.,  President,  Texas  Company,  New  York  City. 
MOORE,  DR.  JOHN  BASSETT,  New  York  City. 
O'DoNNELL,  THOMAS  A.,  President,  American  Petroleum  Institute, 

New  York  City. 

PEW,  J.  HOWARD,  President,  Sun  Company,  Philadelphia.  Pa. 
PRATT,  HERBERT  L.,  Standard  Oil  Co.  of  New  York,  New  York  City. 
REQUA,  M.  L.,  Sinclair  Oil  and  Refining  Co.,  New  York  City. 


THE  INTERNATIONAL  TRADE  CONFERENCE        361 

WELCH,  R.  L.,  Secretary,  American  Petroleum  Institute,  New  York 

City. 

WHALEY,  G.  P.,  Vacuum  Oil  Co.,  New  York  City. 
WOODMAN,  A.  C.,  Union  Petroleum  Co.,  Philadelphia,  Pa. 

Committees  from  Belgium,  Italy  and  France  met  with 
the  American  Committee  on  Petroleum,  Great  Britain  not 
being  represented,  and  discussed  this  problem  and  in  par- 
ticular its  bearings  upon  the  general  fuel  situation  as  a 
substitute,  in  view  of  the  coal  shortage  in  Italy  and 
France.  Following  are  the  proceedings  of  the  three  com- 
mittee meetings: 

BELGIUM. 

Meeting  of  the  Petroleum  Committee  of  the  Interna- 
tional Trade  Conference  with  representatives  of  the 
Belgian  Commission  interested  in  the  subject  of  Petro- 
leum and  its  products,  held  in  Room  127,  Hotel  Traymore, 
Atlantic  City,  New  Jersey,  at  8.15  P.  M.,  October  20. 

The  following  members  of  the  American  Committee 
were  present : 

W.  C.  TEAGLE,  Chairman. 

M.  L.  REQUA. 

E.  C.  LUFKIN. 

CAPT.  J.  F.  LUCEY. 

G.  P.  WHALEY. 

W.  E.  PERDEW. 

G.  S.  DAVISON. 

H.  L.  PRATT. 

C.  C.  SMITH,  Secretary. 

H.  O.  PATTON,  Assistant  Secretary. 

Representing  the  Belgian  Mission. 

M.  DE  GROOTE. 
M.  NEVE. 

The  delegates  from  the  Belgian  Mission  were  warmly 
welcomed  by  Chairman  Teagle,  who  extended  our  guests 
every  assurance  of  cooperation.  He  requested  the  Bel- 
gian delegates  to  speak  with  the  utmost  frankness  as  to 


362        THE  INTERNATIONAL  TRADE  CONFERENCE 

the  situation  in  Belgium,  and  assured  them  of  the  desire 
on  the  part  of  the  American  Petroleum  Industry  to  render 
all  assistance  possible  in  meeting  their  petroleum  needs. 

M.  de  Groote  responded  in  behalf  of  the  Belgian  Mis- 
sion, stating  that  the  situation  with  regard  to  petroleum 
and  petroleum  products  in  Belgium  was  quite  satisfac- 
tory— there  was  no  complaint  of  any  shortage  of  these 
products,  and  that  it  was  unlikely  there  would  be  any  dire 
need  in  this  respect  for  some  time  to  come. 

The  problem  that  confronted  them  at  the  present  time 
was  one  of  storage,  in  that  practically  one-half  of  the 
tankage  in  existence  before  the  war  had  been  destroyed 
as  the  result  of  the  German  invasion.  The  chief  difficulty 
in  restoring  this  tankage  was  due  to  their  inability  to 
secure  steel  plates.  The  question  of  securing  plates  was 
now  under  discussion  with  the  Metals  Committee  and  it 
was  hoped  that  some  solution  would  be  reached  that  would 
speedily  remedy  the  Belgian  present  shortage  of  tank 
storage.  When  the  storage  capacity  was  sufficiently  in- 
creased, it  was  his  feeling  that  the  use  of  fuel  oil  in  in- 
dustrial plants  would  be  materially  expanded.  This  ex- 
pansion, however,  would  depend  upon  the  ability  of  fuel 
oil  to  compete  with  coal  on  a  price  basis  and  in  a  lesser 
degree  upon  the  question  of  storage.  He  also  emphasized 
that  there  would  be  considerable  expansion  in  the  use  of 
fuel  oil  in  the  merchant  marine.  Many  ships  were  chang- 
ing from  coal  to  oil  burners.  American  petroleum  inter- 
ests, naturally  coming  in  competition  with  other  oil-pro- 
ducing European  countries — Russia,  Poland,  Roumania 
and  others,  hence  the  sale  of  petroleum  products  to  Bel- 
gian interests  hinged  upon  price. 

Belgian  imports  of  all  petroleum  products,  prior  to  the 
war,  totaled  for  1912—386,000  tons.  Of  this  the  total 
from  the  United  States  was  214,000  tons.  The  total 
imported  during  1912  was  composed  of  196,000  tons  re- 
fined oils  and  190,000  tons  lubricating  oils. 

Mr.  Neve,  the  other  member  of  the  Petroleum  Com- 
mittee of  the  Belgian  Commission,  gave  it  as  his  opinion 
that  up  to  the  present  time  very  little  fuel  oil  has  been 


THE  INTERNATIONAL  TRADE  CONFERENCE        363 

used  in  their  industrial  plants.  Because  of  the  present 
shortage  of  coal  the  industries  as  a  whole  throughout  his 
country  were  beginning  to  consider  the  use  of  fuel  oil  in 
place  of  coal.  The  extensive  use  of  fuel  oil  in  these  in- 
dustries, however,  would  depend  upon  the  relative  price 
of  fuel  oil  as  compared  with  coal,  as  well  as  upon  storage 
facilities.  Belgium  being  a  coal-producing  country,  it 
does  not  offer  an  attractive  market  for  fuel  oil. 

Both  of  these  gentlemen  submitted  some  very  interest- 
ing facts  as  to  the  havoc  visited  upon  Belgium  and  Bel- 
gian industries  as  the  result  of  the  war.  Practically  all 
of  their  large  industrial  plants  had  been  destroyed  and 
the  machinery  shipped  to  Germany.  Under  the  peace 
terms  most  of  this  machinery  was  now  being  returned  to 
Belgium  and  being  reinstalled.  The  operation  of  these 
restored  plants,  however,  was  contingent  upon  the  secur- 
ing of  coal  or  fuel  oil  to  operate  the  plants. 

In  this  connection  it  was  pointed  out  that  the  price  of 
coal  at  the  present  time  is  approximately  $14  to  $15  per 
ton.  Before  the  war  the  price  was  about  one-quarter  of 
this  figure.  The  present  production  of  coal  is  about  86 
per  cent  of  the  pre-war  output,  which  was  23,000,000 
tons  per  annum.  Of  the  present  production  large  quan- 
tities are  being  exported  to  Italy  and  Switzerland.  la 
addition,  coal  to  the  amount  of  7,.000,000  tons  per  annum 
was  imported  from  England  and  Germany. 

Electric  power  has  had  a  rapid  development  since  the 
end  of  the  war.  This  has  had  a  material  affect  upon  the 
consumption  of  illuminating  oils  in  that  country.  Prior 
to  the  war,  kerosene  was  in  general  use  throughout  Bel- 
gium for  illuminating  as  well  as  cooking  purposes.  The 
almost  total  cessation  of  kerosene  imports  during  the  war 
of  necessity  compelled  some  substitute  which  has  brought 
about  the  more  or  less  general  use  of  gas  or  electricity  as 
a  means  of  illumination  and  for  other  domestic  purposes. 

Practically  all  of  the  electrical  plants  are  now  restored 
and  in  working  order.  It  was  the  feeling  of  the  Belgian 
representatives  that  there  would  not  be  a  very  great 


364        THE  INTERNATIONAL  TRADE  CONFERENCE 

market  for  kerosene  owing  to  the  conditions  just  ex- 
plained. 

The  use  of  motor  cars,  particularly  trucks,  has  come 
into  general  use  since  the  signing  of  the  armistice.  Bel- 
gian industrial  interests  have  been  quick  to  seize  upon 
the  opportunity  that  was  theirs,  at  the  cessation  of  hos- 
tilities, to  purchase  motor  lorries  offered  for  sale  by  th.e 
various  armies  operating  in  Europe.  Trucks  and  motor 
cars  of  all  descriptions  now  fill  the  streets.  The  day  of 
the  horse  vehicle  has  passed  into  the  limbo  of  the  days 
that  are  gone.  To  put  it  in  the  words  uttered  by  M.  Neve, 
"The  streets  of  Belgian  towns  look  like  Fifth  Avenue, 
New  York."  There  is  no  shortage  of  gasoline,  he  said, 
with  which  to  operate  these  motor  vehicles. 

On  the  general  subject  of  reconstruction,  the  delegates 
from  Belgium  agreed  that  their  country  was  rapidly 
reaching  normal  conditions.  Notwithstanding  the  fact 
that  the  population  of  Belgium  has  suffered  a  decline  of 
approximately  5  per  cent.,  the  labor  question  was  fairly 
satisfactory.  When  hostilities  ceased  in  November,  1918. 
800,000  men  were  unemployed. '  Today  less  than  200,000 
are  idle.  There  is  some  labor  unrest,  largely  aggravated 
by  the  agitation  of  labor  leaders.  Some  of  the  large  em- 
ploying interests  were  loath  to  pay  the  prevailing  wage, 
which  today  is  practically  double  that  of  the  pre-war 
basis.  The  skilled  mechanic  today  is  paid  17  to  20  francs 
for  eight  hours'  work,,  which  is  generally  the  standard 
throughout  the  country,  both  as  to  wages  for  skilled  help 
and  as  to  hours  of  work.  Bolshevism  is  not  a  serious 
menace.  Practically  all  of  the  smaller  factories  or  plants 
are  in  operation.  In  view  of  the  fact  that  some  of  the 
larger  plants  were  destroyed  and  the  machinery  trans- 
ported to  Germany,  the  restoration  of  these  larger  units 
to  full  operation  has  been  considerably  delayed.  For  ex- 
ample, prior  to  the  war,  54  large  blast  furnaces  were  in 
operation;  today  only  11  have  been  restored.  The  re- 
establishment  of  the  remaining  46  was  dependent  largely 
upon  securing  an  adequate  supply  of  fuel.  Before  the 


THE  INTERNATIONAL  TRADE  CONFERENCE        365 

war  Belgium  had  2,560  coke  ovens  in  operation — up  to 
date  approximately  650  have  resumed  work. 

The  transportation  situation  as  regards  railroads  is  not 
very  satisfactory.  Motor  trucks  are  in  a  measure,  how- 
ever,, alleviating  the  shortage  of  locomotives.  To  restore 
the  railroads  to  their  former  traffic  capacity  would  re- 
quire some  500  new  locomotives,  and  efforts  are  being 
made  to  secure  these  in  the  United  States.  As  deliveries 
of  their  locomotive  requirements  could  not  be  effected 
under  three  months  the  transportation  situation  is  quite 
serious.  Their  old  engines  cannot  be  repaired  to  advan- 
tage because  of  the  lack  of  copper  and  material  for  tubes 
— all  of  the  tube  factories  being  destroyed  and  the  ma- 
chinery transported  to  Germany  during  the  period  of  the 
war.  Until  the  return  of  this  machinery  is  accomplished 
Belgium  will  not  be  able  to  manufacture  locomotives. 

ITALIAN. 

Report  covering  meeting  of  the  Petroleum  Committee 
of  the  International  Trade  Conference  with  representa- 
tives of  the  Italian  Mission  interested  in  the  subject  of 
Petroleum  and  its  products,  held  in  Room  127,  Hotel 
Traymore,,  Atlantic  City,  N.  J.,  2.15  P.  M.,  October  22, 
1919. 

The  following  members  of  the  American  Committee 
were  present: 

W.  C.  TEAGLE,  Chairman. 

G.  S.  DAVISON. 

E.  C.  LUFKIN. 

CAPT.  J.  F.  LUCEY. 

H.  L.  PRATT. 

M.  L.  REQUA. 

G.  P.  WHALEY. 

W.  E.  PERDEW. 

C.  C.  SMITH,  Secretary. 

H.  O.  PATTON,  Assistant  Secretary. 

Representing  the  Italian  Mission: 

COMMANDER  ENGINEER  FERDINANDO  QUARTIERI. 


366        THE  INTERNATIONAL  TRADE  CONFERENCE 

COMMANDER  PIETRO  GIOVANNI  LAZZERINI. 
MARQUIS  T.  THEODOLI. 
CAPT.  A.  PALANCA. 
And— 

H.  C.  MORRIS,  U.  S.  Bureau  of  Mines. 
Miss  STONEWALL,  Nation's  Business. 

Following  a  few  words  of  welcome  expressed  by  Chair- 
man Teagle  of  the  American  Committee,  the  following 
statement  was  submitted  by  Captain  Palanca  in  behalf 
of  the  Italian  delegates : 

Statement  of  Italian  Fuel  Oil  Situation. 

The  two  subjects  raised  in  this  statement,  namely  Fuel 
Oil,  and  the  entry  of  American  capital  in  the  formation 
of  Italian  companies  for  the  storage  and  distribution  of 
Fuel  Oil,  and  the  refining  of  petroleum  were  fully  dis- 
cussed. 

Fuel  Oil. 

This  discussion  developed  the  fact  that  the  use  of  Fuel 
Oil  as  a  substitute  for  coal  is  receiving  the  keenest  atten- 
tion on  the  part  of  both  the  Italian  Government  for  use 
on  the  Government  owned  railroads  as  well  as  by  Italian 
industries  as  a  whole.  This  interest  is  prompted  largely 
by  the  fact  that  an  equal  amount  of  power  in  Fuel  Oil,  as 
compared  with  coal,  can  be  transported  in  one-third  less 
tonnage.  The  world-wide  shortage  of  shipping,  in  ad- 
dition to  the  scarcity  of  coal,  is,  therefore,  an  incentive 
toward  the  use  of  a  fuel  entailing  the  employment  of  the 
smallest  possible  amount  of  tonnage,  assuming  of  course 
that  fuel  oil  can  be  obtained  in  sufficient  quantity  and  at 
a  price  that  would  compare  favorably  with  coal. 

Coal  Prices. 

In  this  connection  it  was  stated  by  the  Italian  delegates 
that  prices  for  coal  in  Italy  at  the  present  time  were 
approximately,  per  ton,  as  follows : 


THE  INTERNATIONAL  TRADE  CONFERENCE        367 

American  coal $33.00  per  ton 

English  coal $28.00  per  ton 

German  coal  could  be  purchased,  delivered  in  Italy,, 
much  cheaper  than  these  prices,  but  was  limited  in 
quantity. 

If  a  complete  transformation  of  coal  to  fuel  oil  was 
effected  in  the  railroads  and  other  industries  of  Italy,  as 
pointed  out  in  the  statement  quoted,  it  was  estimated  that 
the  fuel-oil  requirements  would  total  4,000,000  tons  per 
annum. 

It  was  the  general  feeling  of  the  American  members, 
as  expressed  by  Chairman  Teagle,  that  the  American 
Petroleum  industry  could  supply  the  contemplated  Italian 
requirements  at  prevailing  prices,  either  f .  o.  b.  American 
ports  or  c.  i.  f.,  subject  to  tank-steamer  tonnage  being 
secured. 

In  order  to  fully  develop  this  transformation  program 
the  Chairman  of  the  Italian  Mission  emphasized  that  he 
and  his  colleagues  were  officially  empowered  by  the  Gov- 
ernment to  enlist  the  capital,  experience  and  cooperation 
of  the  Americans  in  this  enterprise.  Should  this  offer  of 
partnership  prove  attractive  to  individual  petroleum  in- 
terests in  America  he  was  prepared  to  go  into  further  de- 
tails, reporting  the  full  circumstances  to  his  Government,, 
which  in  turn  would  place  any  individuals  or  companies 
here,  desirous  of  pursuing  the  matter  further,  in  direct 
touch  with  Italian  interests  wishing  to  enter  such  a 
partnership. 

This  proposal  was  listened  to  with  a  great  deal  of 
interest  by  American  members;  it  being  a  subject  to 
which  no  previous  consideration  had  been  given,  the 
Chairman  requested  that  the  American  Committee  be 
given  an  opportunity  to  discuss  the  matter  privately. 

Recess. 

Upon  reassembling  at  5.30,  the  Chairman  of  the  Amer- 
ican Committee  stated  that  the  Italian  proposal  had  been 
reviewed  with  a  great  deal  of  interest.  He  explained  that 


368        THE  INTERNATIONAL  TRADE  CONFERENCE 

the  American  Committee  was  conferring  with  the  Italian 
delegations  representing  the  American  Petroleum  indus- 
try as  a  whole  and  that  the  Committee  had  no  authority 
to  commit  the  industry  to  any  definite  program  of  the 
kind  outlined.  The  matter  was  one  for  individuals  or 
companies  in  the  petroleum  industry  to  consider  privately 
with  the  Chairman  and  members  of  the  Italian  Mission. 

The  Chairman  of  the  Italian  mission,  as  previously 
stated  in  this  report,  expressed  his  desire  to  go  into  full 
details  as  to  this  proposal  with  any  one  interested.  He 
pointed  out  that  ' 'Before  the  Great  War  there  was  no 
interest  in  Italy  in  oil.  Now  it  is  a  great  National  ques- 
tion. Italy  sees  it  is  impossible  to  exist  without  oil ;  con- 
sequently we  are  doing  all  we  can  to  interest  American 
Oil  men  in  developing  an  oil  industry  in  the  nation.  It  is 
a  question  of  the  life  of  the  country." 

The  meeting  adjourned  at  6.00  p.  m. 

Statement  by  the  Italian  Committee. 

It  is  undoubtedly  thoroughly  understood  and  recog- 
nized that  one  of  the  most  pressing  problems  for  Italy 
is  that  of  her  fuel  supply. 

While,  on  the  one  hand,  no  effort  is  spared  to  increase 
the  quantity  of  coal  shipped  from  various  sources  to 
Italy,  on  the  other  hand,,  steps  are  being  taken  towards 
the  gradual  transformation  of  railroads  and  factories  to 
burn  fuel  oil  instead  of  coal.  In  this  connection,  we  may 
state  that  a  certain  number  of  our  locomotives  in  service 
in  Italy  have  already  been  transformed,  and  that  some 
locomotives  which  we  are  here  receiving  on  a  contract 
placed  with  an  American  Company  are  being  built  to 
burn  fuel  oil. 

As  the  greatest  difficulty  in  the  way  of  a  normal  and 
sufficient  supply  of  coal  to  Italy  consists  in  tonnage  scar- 
city, that  is  partially  overcome  by  the  fact  that  the  pro- 
jected transpormation  entails  the  use  of  about  one-third 
less  tonnage  to  obtain  the  same  result  in  power  developed. 

It  is  estimated  that  Italy's  need  of  coal  will  in  the  near 
future  amount  to  a  total  quantity  of  12,000,000  tons  per 
year.  Given  the  expected  development  of  our  country, 
this  quantity  may  substantially  be  increased,  and  it  is 
therefore  intended  to  develop  a  program  of  transforma- 


THE  INTERNATIONAL  TRADE  CONFERENCE        369 

tion  of  Italian  railroads,  manufacturing  plants,  shipping, 
etc.,  capable  of  absorbing,,  when  completed,  about  one- 
half  of  the  fuel  imported — namely,  an  annual  supply  of 
about  4,000,000  tons  of  petroleum  (fuel  oils,  kerosene  and 
naptha  being  included  in  this  quantity).  This  is  of 
course  to  be  understood  as  applicable  referring  to  the 
period  of  completed  transformation,  so  far  as  we  can  at 
present  estimate.  It  also  makes  allowance  for  the  plan 
of  having  a  certain  small  proportion  of  the  refined  prod- 
ucts manufactured  in  Italy. 

This  is  therefore  a  very  wide  field  of  enterprise,  at- 
tracting from  every  point  of  view,  capital,  brains  and 
human  efficiency.  Practically  the  whole  thing  has  to  be 
built  up  from  the  foundations.  It  embraces  the  supply  of 
oil,  its  transportation  to  Italy,  the  building  of  the  neces- 
sary tanking  facilities,  and  their  utilization ;  the  manufac- 
ture as  above  stated  of  a  small  percentage  of  the  refined 
products  required ;  the  distribution  of  the  oils ;  the  oper- 
ation of  fueling  stations;  the  supply  of  combustion  out- 
fit,, etc. 

There  is  nobody  more  fit  then  the  Americans  to  be  our 
cooperators  and  we  might  say  our  leaders  in  this  enter- 
prise. Large  interests  can  find  scope  in  it;  companies 
constituted;  it  is  a  problem  that  calls  for  broadminded 
people,  prompt  action,  economic  efficiency,  and  proved 
experience.  Little  wonder,  therefore,  if  we  look  to  you 
as  to  the  men  specifically  suited  to  co-operate  in  the 
solution. 

It  is  our  intention  to  interest  American  capital,  and, 
whenever  and  wherever  necessary,  American  direction 
and  leadership  to  the  greatest  possible  extent ;  so  that  you 
may  regard  it  in  the  light  of  a  permanent  partnership. 
The  only  limitation  we  would  place  on  your  contribution 
of  capital  is  that  just  necessary  to  preserve  the  Italian 
character  of  this  enterprise,  so  that  it  shall  fully  enjoy 
all  the  privileges  granted  to  Italian  companies  under  the 
Italian  law. 

FRANCE. 

Report  covering  meeting  of  the  Petroleum  Committee 
of  the  International  Trade  Conference  with  representa- 
tives of  the  French  Mission  interested  in  the  subject  of 
Petroleum  and  its  products,  held  in  Room  127,  Hotel 
Traymore,  10  a.  m.,  October  22,  1919. 


370        THE  INTERNATIONAL  TRADE  CONFERENCE 

The  following  members  of  the  American  Committee 
were  present: 

W.  C.  TEAGLE,  Chairman. 
G.  S.  DAVISON. 

E.  C.  LUFKIN. 
CAPT.  J.  F.  LUCEY. 
M.  L.  REQUA. 

H.  L.  PRATT. 

DR.  JOHN  BASSETT  MOORE. 

G.  P.  WHALEY. 

W.  E.  PERDEW. 

C.  C.  SMITH,  Secretary. 

H.  0.  PATTON,  Assistant  Secretary. 

Representing  the  French  Mission : 

M.  PESSON-DlDION. 

M.  FRANCOIS  PONCET. 

M.  JULIEN  POTIN. 

CAPT.  INGOUF. 
and — 

EDSON  T.  BASTIN,  U.  S.  Geological  Survey. 

P.  B.  KENNEDY,  Director,  U.  S.  Bureau  of  Foreign  and  Domestic 
Commerce. 

LESLIE  C.  WELLS,  Trade  Commissioner,  U.  S.  Department  of  Com- 
merce. 

H.  C.  MORRIS,  U.  S.  Bureau  of  Mines. 

ROBERT  P.  SKINNER,  U.  S.' Consul  General,  London. 

F.  S.  TISDALE,  Nation's  Business. 

French  Oil  Production. 

The  delegates  from  the  French  Mission  were  welcomed 
by  Chairman  Teagle,,  who  assured  them  of  the  desire  of 
the  American  Petroleum  Industry  to  be  as  helpful  as  pos- 
sible in  meeting  the  petroleum  needs  of  France. 

The  situation  as  regards  petroleum  was  presented  in  a 
written  report  read  by  Captain  Ingouf.  This  report, 
briefly  summarized,  pointed  out  that  outside  of  Alsace, 
where  approximately  50,000  tons  of  oil  are  annually  pro- 
duced, France  has  no  production  of  petroleum  of  appre- 
ciable significance. 


THE  INTERNATIONAL  TRADE  CONFERENCE        371 

Coal. 

The  output  of  the  coal  mines  of  France  had  never  been 
sufficient  to  meet  her  own  industrial  needs.  The  loss  of 
many  of  her  coal  mines  through  war's  destruction  not 
compensated  for  by  aquisition  of  the  Sarr  district,  made 
it  certain  that  France  for  some  years  to  come  would 
afford  a  constantly  increasing  market  for  fuel  oil. 

Fuel  Oil 

Very  little  fuel  oil  has  as  yet  been  used  in  industrial 
plants  and  under  marine  boilers.  The  war,  however, 
brought  about  possibilities  for  an  enlarged  use  of  this 
commodity  and  it  was  predicted  that  in  the  near  future 
fuel  oil  would  come  into  general  use.  Providing  the 
necessary  tank  steamer  tonnage,  storage  and  distributing 
facilities  as  well  as  the  incidental  equipment  necessary 
to  the  burning  of  fuel  oil  were  obtainable,  it  was  esti- 
mated that  their  requirements  during  1920  would  be  at 
the  rate  of  100,000  tons  monthly.  Later  on,  as  additional 
equipment  was  installed,  it  was  believed  that  the  impor- 
tations would  increase  materially. 

Previous  to  the  meeting,,  the  French  delegates  had  been 
handed  by  the  American  Committee,  a  memorandum  of 
the  subject  of  fuel  oil  reading  as  follows : 

"The  American  Petroleum  Industry  is  producing  as 
part  of  its  refinery  operations,  a  grade  of  fuel  oil  which 
is  being  used  generally  for  bunker  fuel-oil  purposes  as 
well  as  for  commercial  purposes  on  shore.  This  oil  has  a 
minimum  flash  of  18,000  B.  T.  U.'s  per  pound ;  is  fluid  at 
30  to  35  degrees  Fahr.,  and  contains  not  to  exceed  two 
per  cent  of  dirt,  water  and  sediment. 

It  is  the  view  of  this  Committee,  generally  speaking, 
that  the  fuel  oil  product  which  can  be  secured  at  the  low- 
est price  will  be  a  product  having  practically  the  charac- 
teristics indicated  above. 

This  grade  of  oil  has  proven  satisfactory  for  most  fuel 
purposes  and  this  Committee  wishes  to  bring  to  the  at- 
tention of  the  Foreign  Missions  that  if  their  governments 


372        THE  INTERNATIONAL  TRADE  CONFERENCE 

adopt  specifications  that  exclude  the  delivery  of  an  oil 
of  this  character,  through  the  imposition  of  more  rigid 
specifications,  the  result  will  be  that  the  purchasers  will 
be  obliged  to  pay  higher  prices  for  such  products. 

For  other  than  bunker  purposes  (i.  e.,  commercial  pur- 
poses on  shore)  certain  crude  oils  are  being  used  as  fuel 
without  refining  treatment.  It  is  suggested  that  it  may 
be  in  the  interest  of  foreign  buyers  if  their  governments 
adopt  such  specifications  as  will  permit  of  importation 
of  such  crude  oils  for  fuel  use." 

It  was  apparently  agreed  by  the  French  delegation  that 
the  fuel  oil  known  as  "bunker  oil"  and  that  for  industrial 
and  marine  use  the  grades  used  in  the  United  States 
would  be  generally  satisfactory.  They  were  assured  that 
it  would  not  be  difficult  for  the  American  Petroleum  in- 
dustry to  supply  their  requirements  of  fuel  oil  as  indi- 
cated subject  to  the  necessary  tank-steamer  tonnage 
being  secured. 

Kerosene  and  Gasoline. 

Prior  to  the  outbreak  of  the  Great  War  the  annual  con- 
sumption of  kerosene  and  gasoline  was  120,000  tons — it 
is  now  estimated  that  the  requirements  total  500,000 
tons,  half  kerosene  and  half  gasoline.  No  accurate  fore- 
cast of  the  requirements  of  aviation  gasoline  could  be 
given.  Lubricating  oils  were. being  received  in  generally 
sufficient  quantities. 

Road  Oil. 

An  interesting  feature  of  this  report  was  the  reference 
made  to  the  possibility  of  France  becoming  a  large  im- 
porter of  road  oil,  of  which  very  little  has  been  used  up 
to  the  present  time.  Its  use  presents  an  entirely  new  de- 
parture in  road  building  in  France.  With  44,,000  miles 
of  highways,  14  per  cent  of  which  were  reconstructed 
following  the  havoc  of  war,  it  is  apparent  that  the  use  of 
road  oil  presents  an  attractive  field  for  American  enter- 
prise. The  report  submitted  by  the  French  delegation  on 
this  point  says — "it  is  very  likely  that,  following  the  ex- 


THE  INTERNATIONAL  TRADE  CONFERENCE        373 

ample  laid  by  the  United  States,  road  oil  will  be  more  and 
more  used  in  the  future." 

Value  of  Imports. 

Summing  up  the  total  French  requirements  of  kero- 
sene, gasoline,  fuel  and  gas  oil,  they  were  reckoned  at  a 
yearly  value  of  approximately  $50,000,000,  exclusive  of 
freight  charges.  The  report  adds — 'The  United  States 
can  secure  a  very  large  part  of  that  business." 

Transportation  and  Storage. 

France  has  a  regular  fleet  of  tank  steamers  totalling 
about  40,000  tons  capacity,  to  which  will  possibly  be  ad- 
ded some  tankers  of  German  origin,  and  in  addition 
70,000  ton  of  ships  now  building  in  France.  It  was 
pointed  out  by  the  French  that  water  ballast  compart- 
ments of  vessels  plying  to  France  could  be  utilized  for 
carrying  heavy  oils — a  practice  largely  employed  during 
the  war.  All  of  these  means,  however,  would  not  suffice 
to  transport  ultimately  the  French  requirements.  Greater 
additions  to  the  tanker  fleet  would  be  necessary  to  carry 
the  contemplated  further  increases  in  the  imports  of  pe- 
troleum products. 

Storage  and  Distributing  Facilities. 

Tankage  for  the  storing  of  petroleum  products  is  quite 
adequate,  totalling  approximately  150,000,000  gallons 
capacity.  Tank  cars,  barges  unloading  berths  and  racks, 
are  sufficient,  or  can  easily  be  made  sufficient,  to  distri- 
bute imported  supplies.  While  pipe-line  transportation 
is  little  employed,  this  form  of  carrier  will,  in  time,  be 
adopted  and  provide  a  more  economical  means  of  trans- 
portation. Practically  all  of  those  extensive  means  for 
the  distribution  of  petroleum  products  were  largely  cre- 
ated during  the  war  and  played  a  signal  and  important 
part  in  bringing  victory  to  the  Allied  forces. 


374        THE  INTERNATIONAL  TRADE  CONFERENCE 

Purchases. 

The  Government  purchasing  organization  inaugurated 
during  the  war  will  continue  to  exist  for  six  months  fol- 
lowing the  ratification  of  the  peace  treaty.  Peace  was 
ratified  in  France  in  October.  The  next  French  Congress 
will  determine  whether  or  not  the  present  method  of 
grouping  the  French  importers  and  pooling  their  pur- 
chases under  Government  control  will  be  continued. 

Import  Duty. 

France  must  use  petroleum  fuels  as  a  substitute  for  the 
coal  she  lacks.  To  encourage  the  importation  of  com- 
bustible oils,  the  Act  of  August  5,.  1919,  and  the  Decree 
of  August  30,  1919,  provide  for  a  decrease  in  the  import 
taxes  on  heavy  oils  of  from  120  francs  per  ton  to  but  4 
francs.  This  means  that  fuel  oil  can  now  be  sold  in 
France  at  a  price  which  compares  favorably  with  coal. 

Kerosene. 

The  kerosenes  used  in  France  corresponds  to  the 
grades  known  in  the  United  States  as  "Standard  White," 
"Prime  White"  and  "Water  White."  These  grades  are 
perfectly  satisfactory  to  the  French  consumer. 

Gasoline. 

The  present  gasoline,  however,  is  not  so  satisfactory. 
Before  the  War  France  imported  mostly  grades  known 
as  66/68  and  64/65  gasolines.  Subsequently  it  has  been 
necessary  to  use  59/61  and  the  so-called  "U.  S.  Navy" 
grades.  Because  self-starters  on  motor  cars  are  little 
used  in  France,  a  gasoline  of  high  volatility  is  desirable. 
New  cars,  for  the  most  part,  are  now  being  equipped  with 
self-starters. 

On  this  point  the  American  Committee  explained  that 
the  general  application  of  self-starters  to  motor  cars 
would  result  in  great  economy  of  gasoline  consumption. 
Motors  equipped  with  electric  starters  were  rarely  al- 


THE  INTERNATIONAL  TRADE  CONFERENCE        375 

lowed  to  run  idle,  which  is  the  general  practice  with 
automobiles  not  so  equipped.  The  saving  of  gasoline  re- 
sulting from  shutting  off  the  motor  whenever  the  car  was 
stopped  would  soon  effect  the  additional  cost  of  the  elec- 
tric starter.  Then,  too,  attachment  of  starters  would  per- 
mit the  use  of  a  lower  grade  fuel  than  would  otherwise 
be  possible. 

The  discussion  on  this  phase  of  the  gasoline  subject 
brought  out  the  suggestion  from  the  American  Com- 
mittee that  the  French  requirements  should  be  supplied, 
to  the  largest  extent  possible  with  gasoline  of  United 
States  standard  specifications,,  which  is  in  general  use  in 
America.  This  suggestion  was  prompted  by  reason  of  the 
fact  that,  while  the  higher  grade  or  more  volatile  gaso- 
line could  be  furnished  by  the  American  petroleum  in- 
dustry, it  would  be  more  expensive  than  the  Standard 
grade  used  in  the  United  States. 

The  Financial  Situation. 

Like  other  European  nations,  France  is  at  a  great  dis- 
advantage in  the  matter  of  exchange  in  financing  her  pur- 
chases in  this  country.  For  example,  gasoline  costing 
wholesale,  20  cents  per  gallon,  f .  o.  b.  New  York  figures, 
francs  2.10,  at  French  ports,  at  the  present  rate  of  ex- 
change. At  the  normal  rate  the  cost  would  be  francs 
1.28. 

This  emphasized  the  importance  of  French  importers 
obtaining  credit  covering  their  purchases  here.  Assur- 
ance was  given  our  French  friends,  that  the  petroleum 
industry,  as  represented  by  the  American  Committee, 
would  gladly  participate  in  any  plan  providing  for  the 
extension  of  credit  adopted  by  the  Conference,  and  in  this 
connection  they  were  handed  a  resolution  bearing  direct- 
ly on  this  subject  as  follows: 

"WHEREAS,  the  Petroleum  Committee  of  the  Inter- 
national Trade  Conference,  composed  of  members  of  the 
petroleum  industry  of  the  United  States,  has  been  called 
together  for  the  purpose  of  considering  the  problems  in- 


376        THE  INTERNATIONAL  TRADE  CONFERENCE 

volved  in  furnishing  European  buyers  with  fuel  oil  and 
other  petroleum  products,  and 

"WHEREAS,  this  committee  believes  it  desirable  that 
the  Credit  and  Finance  Committee  of  the  International 
Trade  Conference,  formulate  some  plan  which  will  be  a 
basis  for  the  establishment  of  credits  wherewith  to  liqui- 
date purchases  made  in  this  country  by  said  European 
buyers,  and 

"WHEREAS,  we  wish  to  express  the  consensus  of 
opinion  of  this  Committee  on  this  subject  to  said  Com- 
mittee on  Credit  and  Finance,  now,  therefore,  be  it 

"Resolved,  That  it  is  the  belief  of  this  Committee  that 
the  petroleum  industry  of  the  United  States  will  par- 
ticipate in  any  plan  that  may  be  worked  out,  and  will 
take  its  share  of  any  type  of  international  bonds  or  other 
forms  of  security  created  under  such  plan." 

Adjournment. 

Following  a  few  words  from  the  Chairman,  express- 
ing a  desire  to  assist  France  in  every  way  possible  in  solv- 
ing her  Petroleum  problems,  and  an  offer  from  Mr.  M.  L. 
Requa,  former  Director  of  the  Oil  Division,  United  States 
Fuel  Administration,  to  provide  any  desired  information 
on  fuel  oil  burning  equipment,  the  meeting  adjourned  at 
12  M. 

REPORT  OF  COMMITTEE. 

The  Petroleum  Committee  begs  to  submit  the  follow- 
ing report: 

The  Committee  had  the  pleasure  of  meeting  with  the 
representatives  from  Belgium,  France  and  Italy,  and  dis- 
cussed with  them  general  questions  in  connection  with 
the  petroleum  requirements  of  their  respective  countries 
— more  particularly  the  question  of  their  possible  needs 
of  fuel  oil  to  supplement  the  diminishing  coal  supply. 

Briefly  summarized  the  results  of  these  meetings  were 
as  follows: 

• 

BELGIUM. 

In  this  country,  there  is  little  or  practically  no  storage 
or  distributing  facilities  for  the  handling  of  fuel  oil.  Bel- 
gium is  a  coal  producing  country,  and  we  were  advised 


THE  INTERNATIONAL  TRADE  CONFERENCE        377 

that  its  mines  are  now  operating  86%  of  their  pre-war 
capacity.  It  was  the  expectation  of  the  Belgian  delega- 
tion that,  given  the  necessary  time  for  reconstruction  and 
rehabilitation,  there  would  be  sufficient  coal  available  to 
cover  their  fuel  needs.  They  reported  that  their  sup- 
plies of  other  petroleum  products  were  in  every  way  ade- 
quate to  take  care  of  current  requirements. 

FRANCE. 

The  French  delegation  stated  that  the  output  of 
French  coal  mines  had  never  been  sufficient  for  her  indus- 
trial needs,  and  the  destruction  of  the  mines  in  the  North 
had  not  been  compensated  for  by  the  acquisition  of  the 
Saar  district.  For  these  reasons,  France  would  afford 
tor  some  years  to  come,  a  constantly  increasing  market 
for  fuel  oil. 

Providing  the  necessary  tank  steamer  tonnage,  storage 
and  distributing  facilities,  as  well  as  the  incidental  equip- 
ment necessary  to  the  burning  of  fuel  oil,  were  obtain- 
able, the  French  delegates  estimated  their  requirements 
for  1920,  as  approximately  100,000  tons  of  fuel  oil  per 
month.  The  Petroleum  Committee  advised  the  French 
delegates,  that  it  would  not  be  difficult  for  the  American 
petroleum  industry  to  supply  their  requirements  of  fuel 
oil  as  indicated,  subject  to  the  necessary  tank  steamer 
tonnage  being  secured. 

The  French  delegation  explained,  that  they  expected 
a  relatively  larger  consumption  of  gasoline  in  the  future 
than  there  had  been  in  the  past.  The  Petroleum  Com- 
mittee pointed  out  the  desirability  and,  perhaps  the 
necessity  of  arranging  as  soon  as  possible,  so  that  the 
French  requirements  might  be  supplied  to  the  largest  ex- 
tent possible  with  gasoline  of  United  States  standard 
specifications. 

ITALY. 

The  Italian  delegation  informed  us,  that  there  were 
no  coal  mines  in  Italy  and  that  one  of  her  most  pressing 
problems  was  an  adequate  supply  of  fuel.  We  were  ad- 
vised, that  a  certain  number  of  locomotives  on  the  Italian 
Government  Railroads  had  already  been  adapted  to  burn- 
ing fuel  oil,  and  that  contracts  for  additional  locomotives 
specified  "fuel  oil  burners."  They  estimated,  that  even- 
tually, as  soon  as  the  necessary  tonnage  and  other  facil- 
ities could  be  created,  that  Italy  might  be  able  to  use  up 
to  4,000,000  tons  of  fuel  per  annum. 


378        THE  INTERNATIONAL  TRADE  CONFERENCE 

The  Italian  delegation  urged  that  American  capital  en- 
gaged in  the  petroleum  business  should  join  with  Italian 
capital  in  the  formation  of  local  Italian  companies  to 
undertake  the  creation  of  the  necessary  facilities,  not  only 
for  the  storage  and  distribution  of  fuel  oil,  but  also  for 
the  completion  and  operation  of  two  or  three  refineries 
in  different  parts  of  Italy. 

GENERAL. 

All  of  the  foreign  delegations  pointed  out  the  difficulties 
arising  out  of  the  present  acute  exchange  situation,  which 
was  fully  recognized  by  the  Petroleum  Committee. 

The  following  resolution  was  adopted : 

"That,  it  is  the  belief  of  the  Petroleum  Committee,  that 
the  petroleum  industry  of  the  United  States  will  partici- 
pate in  any  plan  that  may  be  worked  out,  and  will  take 
its  share  of  any  type  of  International  bonds  or  other 
forms  of  security  created  under  such  plan." 

A  report  in  detail  covering  the  proceedings  of  the  vari- 
ous meetings  will  be  prepared  and  may  be  had  upon  appli- 
cation to  the  United  States  Chamber  of  Commerce  or  the 
American  Petroleum  Institute. 

W.  C.  TEAGLE,  Chairman. 


COMMITTEES  ON  RECONSTRUCTION  SUPPLIES. 

BELGIUM. 

M.  CANON-LEGRAND. 
M.  NEVE. 

M.  VAN  DEN  VEN. 


FRANCE. 


M.  VARAIGNE. 
M.  WADDINGTON. 
M.  GODET. 
M.  TIRMAN. 

M.  DOLLEANS. 
M.  PONCET. 
M.  INGOUF. 


THE  INTERNATIONAL  TRADE  CONFERENCE        379 
GREAT  BRITAIN. 

SIR  ARTHUR  SHIRLEY  BENN. 
SIR  JAMES  HOPE  SIMPSON. 
MR.  MARSHALL  STEVENS. 


ITALY. 


L.  LUIGGI. 

V.  MENEGHELLI. 

A.  JACCARINO. 

E.  BARONI. 

F.  QUATTRONE. 

G.  B.  CECCATO. 
G.  GRANATA. 
E.  GERLI. 

V.  E.  SILVESTRI. 
E.  FLORES. 
A.  PALANCA. 
0.  ROSSATI. 
T.  THEODOLO. 
M.  LUIGGI,  JR. 
A.  ANZANI. 
P.  TUCCIMEI. 
DR.  MIOZZI. 


AMERICA. 


E.  W.   RICE,  JR.,  Chairman; 

President,  General  Electric  Co.,  Schenectady,  New  York. 

GEORGE  A.  O'REILLY,  Vice-Chairman  and  Secretary: 

Irving  National  Bank,  New  York  City. 

ASBURY,  CHARLES  W.,  President,  Enterprise  Manufacturing  Co., 
Philadelphia,  Pa.;  President,  American  Hardware  Manufac- 
turers' Association,  New  York  City. 

BABB,  MAX  W.,  Vice-President,  Allis-Chalmers  Manufacturing  Co., 
Milwaukee,  Wis. 

BRANTINGHAM,  C.  S.,  Emerson,  Brantingham  Co.,  Rockfbrd,  111. 

BURTON,  J.  H.,  J.  H.  Burton  &  Co.,  New  York  City. 

CORNELL,  C.  L.,  Vice-President,  Niles-Bement-Pond  Co.,  New  York 
City. 

DOAN,  J.  B.,  President,  American  Tool  Work  Co.,  Cincinnati,  Ohio. 

DURYEA,  DR.  J.  T.,  President,  Pierce,  Butler  &  Pierce,  New  York 
City. 


380        THE  INTERNATIONAL  TRADE  CONFERENCE 

FLETCHER,  ANDREW,  President,  American  Locomotive  Co.,  New 
York  City. 

GOODMAN,  CHARLES  A.,  President,  National  Hardwood  Lumber  Co., 
Chicago,  111. 

HERR,  E.  M.,  President,  Westinghouse  Electric  &  Manufacturing 
Co.,  East  Pittsburgh,  Pa. 

HILDRETH,  CHARLES  E.,  Secretary,  National  Machine  Too.  Build- 
ing Association,  Worcester,  Mass. 

KAUL,  JOHN  J.,  Kaul  Lumber  Co.,  Birmingham,  Ala. 

LEGGE,  ALEXANDER,  Vice-President,  International  Harvester  Co., 
Chicago,  111. 

MASON,  STEPHEN  C.,  President,  National  Association  of  Manu- 
facturers, Pittsburgh,  Pa.;  Secretary,  McConway  &  Tnrley  Co. 

McCLURE,  JOHN  W.,  First  Vice-President,  National  Wholesale 
Lumber  Dealers'  Association,  Belgrade  Lumber  Co.,  Memphis, 
Tenn. 

RANNEY,  GEORGE  A.,  President,  National  Implement  and  Vehicle 
Association,  Chicago,  111. 

SALMON,  W.  W.,  President,  General  Railway  Signal  Co.,  Rochester, 
New  York. 

STEWART,  HAMILTON,  Vice-President,  Harbison  Walker  Refracto- 
ries Co.,  Pittsburgh,  Pa. 

TRIGG,  ERNEST  T.,  Vice-President,  John  Lucas  &  Co.,  Philadel- 
phia, Pa.;  President,  Federation  of  Building  Industries. 

The  Committee  met  Sunday,  October  19,  at  8  p.  m.,  the 
following  members  being  present : 

E.  W.  RICE,  JR.,  Chairman. 

GEORGE  A.  O'REILLY,  Vice-Chairman  and  Secretary. 

WM.  D.  SOUTHWICK,  Assistant  Secretary. 

J.  H.  BURTON. 

A.  R.  BUSH. 

MAJ.  WM.  M.  CHAMBERLIN. 

C.  L.  COMELL. 

CHAS.  E.  HILDRETH. 

GEO.  A.  RANNEY. 

W.  W.  SALMON. 

HAMILTON  STEWART. 

• 

The  following  suggestions  were  offered  for  considera- 
tion of  the  Committee : 


1.    Ascertain  from  Delegations: 

(a)  Class  of  goods  required 

(b)  Quantity  of  same 

(c)  Rate  of  delivery  required 


THE  INTERNATIONAL  TRADE  CONFERENCE        381 

2.  Get  information  regarding  plans  of  the  four  coun- 
tries concerning  the  supplying  of  the  needs  of  the  Cen- 
tral Powers ;  this,  because  of  its  bearing  upon  our  possi- 
bility of  production. 

3.  Information  concerning  the  goods  they  will  be  able 
to  export;  this  in  connection  with  the  idea  of  barter. 

4.  Suggested  that  sub-committees  be  created  to  treat 
different  lines,  or  group  of  lines,  which  are  to  be  con- 
sidered. 

5.  Get  information  concerning  the  extent  to  which 
these  countries  propose  to  supply  their  own  needs  by  pur- 
chases from  us,  also  purchases  from  other  countries. 

6.  It  was  suggested  by  Mr.  Charles  E.  Hildreth  that 
the  surplus  machinery  and  tools,  which  it  is  proposed  to 
ofl'er  to  American  purchasers  by  the   Government,   De 
tendered  to  our  Allies  upon  the  same  basis  as  is  nroposed 
to  offer  same  to  American  trade. 


MEETING. 
OCTOBER  21,  10  A.  M. 

ITALY. 
The  Italian  Committee,  represented  by : 

L.  LUIGGI. 

V.  MENEGHELLI. 

E.  BARONI. 

F.  QUATTRONE. 

A.  PALANCA. 
T.  THEODOLI. 
M.  LUIGGI. 
A.  ANZANI. 
P.  TUCCIMEI. 
A.  JACCARINO. 

G.  B.  CECCATO. 

Were  received  by  the  Reconstruction  Supplies  Commit- 
tee, the  following  members  being  present: 

E.  W.  RICE,  Chairman. 

GEORGE  A.  O'REILLY,  Vice-Chairman  and  Secretary. 

WM.  D.  SOUTHWICK,  Assistant  Secretary. 


382        THE  INTERNATIONAL  TRADE  CONFERENCE 

MAJ.  WM.  M.  CHAMBERLIN,  Assistant  Secretary. 

C.  S.  BRANTINGHAM. 

A.  R.  BUSH. 

J.  H.  BURTON. 

C.  L.  CORNELL. 

J.  B.  DOAN. 

DR.  J.  T.  DURYEA. 

CHARLES  A.  GOODMAN. 

CHARLES  E.  HILDRETH. 

GEORGE  A.  RANNEY. 

W.  W.  SALMON. 

HAMILTON  STEWART. 

L.  C.  ZAPF. 

Dr.  Luigi  Luiggi  expressed  great  appreciation  of  the 
wonderful  industrial  accomplishments  of  the  United 
States.  Upon  this,  he  based  the  confidence  of  the  Italian 
Mission  in  our  ability  to  help  Italy  re-estabilsh  herself. 
Through  Dr.  Luiggi,  the  Commission  voiced  its  apprecia- 
tion of  the  efforts  and  success  attendant  upon  Mr.  Filene's 
activities  in  behalf  of  this  convention. 

Dr.  Luiggi  stated  that  while  the  North  of  France  has 
suffered  great  industrial  loss  incident  to  the  war,  agri- 
cultural interests  in  the  North  of  Italy,  have  suffered  very 
materially,  and  this  phase  of  the  Mission's  labors  is  to  re- 
ceive special  attention.  The  Northern  country  is  large- 
ly under  water,  because  of  the  lack  of  machinery  in  the 
nature  of  pumps  and  other  equipment  for  draining  and 
re-establishing  the  areas.  The  enemy  destruction  in  this 
section  was  exceptionally  thorough.  The  region  is  high- 
ly fertile,  and  the  population  is  dense  and  exceptionally 
capable  in  agricultural  pursuits.  Farmers  also  lost  to  the 
enemy  all  of  their  farming  implements  which,  together 
with  the  damage  to  the  buildings,  developed  almost  com- 
plete ruin.  It  is  absolutely  necessary  to  start  produc- 
tion on  account  of  the  great  need  of  food  supplies  for  the 
rapidly  growing  population.  Formerly  Italy  produced 
sufficient  food  during  eight  or  nine  months  of  the  year 
to  meet  nearly  all  the  requirements  of  the  nation.  Some 
imports  were  made  during  the  other  three  or  four  months 
of  the  year.  To  meet  the  present  and  future  conditions, 
it  is  essential  that  the  damaged  machinery  should  be 


THE  INTERNATIONAL  TRADE  CONFERENCE        383 

replaced,  and  the  farm  machinery,  fertilizers  and  other 
methods  of  modern  farming  be  applied. 

The  Austrians,  while  perhaps  not  so  savage  as  the  Ger- 
mans, were  more  thorough  in  other  respects.  What  was 
not  destroyed  was  carried  away.  If  the  buildings  were 
not  destroyed  completely,  the  doors,  windows,  hardware, 
etc.,  were  stripped  and  burnt  or  sent  into  enemy  terri- 
tory. As  a  result,  lumber,  windows,  doors,  etc.,  are  vital- 
ly needed  to  re-house  people.  Our  aid  in  this  respect  is 
solicited.  While  Italian  homes  were  nearly  all  masonary 
they  cannot  be  built  quickly,  and  haste  is  essential.  Block- 
making  machinery  would  help  those  who  desire  to  rebuild 
in  masonary  and  our  cement  block-making  machinery 
would  be  welcomed.  In  addition,  our  ready-made  houses 
would  be  of  interest;  this  subject  being  treated  later. 

Prof.  Vittorio  Meneghelli  explained  that  the  fisheries 
in  the  Adriatic,  suffered  materially.  Practically  anything 
that  served  to  secure  fish,  or  other  sea  foods  for  the  pop- 
ulation, was  destroyed.  This  included  more  than  1,000 
fishing  boats,  and  all  equipment,  such  as  nets,  gear,  etc. 
This  will  require  replacement.  He  submitted  for  the  use 
of  the  Committee,  a  complete  report  on  the  subject  of 
agricultural  and  industrial  reconstruction,  which  is  at- 
tached. This  report  was  read  to  the  Committee.  The 
Professor  stated,  that  in  a  nutshell,  textile,  engineering, 
lumber,  chemical  and  agricultural  implements  were  those 
needed  prompt  attention. 

Com.  Baroni  explained  how  certain  sections  of  the 
country  not  yet  in  good  cultivation,  are  surfaced  with  a 
hard  crust,  which  must  be  broken  before  cultivation.  The 
climate  in  this  section  is  suitable  for  fruit,  vineyards, 
etc.  The  sections  adjacent  to  Rome,  and  that  in  the 
Southern  part  of  Italy,  are  of  this  character.  They  would 
all  be  exceedingly  productive,  if  some  means  of  quickly 
and  thoroughly  breaking  and  cultivating  the  soil  can  be 
had.  Italy  has  large  quantities  of  explosives,  which  she 
wishes  to  use  in  blasting  this  surface,  and  Dr.  Luiggi 
asked  what  suggestion  we  could  offer  relative  to  quick 
drilling  processes  which  would  produce  holes,  a  maximum 


384        THE  INTERNATIONAL  TRADE  CONFERENCE 

of  3  feet  in  depth,  in  which  explosives  would  be  placed 
for  blasting.  He  suggested,  that  diamond  drills,  air  drills, 
etc.,  were  too  expensive,  that  some  simple  machine  would 
be  required,  and  that,  if  possible,  we  should  keep  in  mind 
the  fact,  that  electricity  could  be  freely  used  throughout 
these  territories  for  power.  Mr.  Stewart,  of  Harbison 
Walker  Refractories,  suggested  the  DuPonts  be  requested 
to  get  in  touch  with  the  Italian  Mission  inasmuch  as  they 
were  doing  this  work  on  a  large  scale. 

In  other  sections,  winter  rains  and  snows  stay  on  the 
ground  so  long  that  it  prevents  planting  wheat  and  other 
crops,  unless  promptly  drained.  There  are  a  certain  num- 
ber of  pumps,  motors  and  draining  equipment  made  in 
Italy,  but  our  larger  interests  in  this  direction  suggest  co- 
operation in  effecting  desired  results.  After  the  land  is 
drained,  trenches  must  be  cut  and  the  necessary  ma- 
chinery for  doing  this  quickly  and  efficiently  must  be 
secured.  Not  only  it  is  necessary  to  drain  these  sections 
for  agricultural  purposes,  but  the  question  of  health  of 
the  population  living  in  these  areas  is  involved.  It  is 
requested,  that  the  engineers  of  the  United  States  War 
Department,  be  asked  to  supply  the  Mission  with  the  in- 
formation relative  to  trench  digging  machinery,  inas- 
much as  they  have  used  large  numbers  of  similar 
machines  during  the  war.  It  was  suggested  also,  that 
the  Mission  be  referred  to  the  Austin  Company,  of 
Waukegan,  111.,  manufacturers  of  trench  digging 
machines. 

There  is  an  abundance  of  labor  in  Italy.  Every  means 
of  providing  work  and  food  for  these  men  must  be  de- 
veloped. Formerly,  about  600,000  Italians  emigrated 
from  Italy  each  year.  The  population  is  now  increasing 
at  the  rate  of  about  1,000,000  per  year,  and,  because  of 
the  shutting  of  the  doors  in  allied  countries  to  immigra- 
tion, there  is  no  exodus  whatever,  which  is  developing  a 
serious  problem.  If  work  and  food  is  not  supplied  in  the 
immediate  future,  disturbances  may  result.  It  was  sug- 
gested, that  American  interests  be  requested  to  co-oper- 
ate with  the  Mission  in  respect  to  the  reclamation  of  land, 


THE  INTERNATIONAL  TRADE  CONFERENCE        385 

that  is  to  clearing,  draining  and  planting  lowlands,  to- 
gether with  the  character  of  crops  applicable.  Dr.  Luiggi 
stated  the  Italian  laws  on  the  drainage  of  marshes  grants 
a  good  subsidy  for  this  work  on  a  very  considerate  basis. 
Mr.  Salmon  of  the  General  Railway  Signal  Company,  of 
Rochester,  suggested  that  the  Commission  view  the 
work  now  being  done  in  areas  between  Rochester  and 
Syracuse,  in  that  much  of  it  is  of  a  character  very  similar 
to  that  described  by  Dr.  Luiggi.  Mr.  Salmon  offered  to 
supervise  a  visit  if  the  necessary  arrangement  can  be 
effected. 

As  a  part  of  the  above  program  of  reconstruction,  Dr. 
Luiggi  stated  the  housing  question  was  of  vital  import- 
ance. Wooden  houses  are  too  expensive.  We  might  have 
our  manufacturers  of  standard  homes  submit  a  proposal 
covering  frames  of  houses  without  roofs  or  walls,  but  to 
include  wire  netting  sides  upon  which  the  Italians  would 
apply  cement  through  cement  guns,  such  as  have  been 
made  during  the  war.  Expensive  houses  are  not  needed. 
Buildings  of  a  more  or  less  temporary  nature,  such  as 
these  frame  and  cement  houses  would  meet  the  require- 
ments. The  Italians  lack  experience  in  the  construction 
of  such  houses,  and  will  gladly  invite  American  initiative 
for  their  interest.  Mr.  Burton  of  J.  H.  Burton  &  Com- 
pany, New  York,  suggested  our  "Take  down"  houses  as 
used  during  the  war.  He  stated,  the  French  Govern- 
ment investigate  these  buildings,  but  because  of  the  ten- 
dency to  stone  similar  to  Dr.  Luiggi's  possible  objection, 
they  were  not  inclined  at  first  to  buy  them  in  quantities. 
At  the  present  time,  however,  Mr.  Burton  has  submitted 
bids  for  some  56,000  of  these  houses  for  use  by  the 
miners  in  the  Lens  area.  They  are  all  fabricated  ready 
to  set  up.  The  cement  is  later  applied  with  cement  guns 
as  above  described.  Dr.  Luiggi  says  this  building  is 
exactly  what  they  want  in  large  numbers.  The  Southern 
mills  are  figuring  on  supplying  the  lumber  and  frames, 
and  in  designing  and  constructing  them,  they  are  includ- 
ing the  doors,  windows,  etc.,  that  there  will  be  absolutely 
no  loss,  and  the  total  cost  would  involve  less  than  that 


386        THE  INTERNATIONAL  TRADE  CONFERENCE 

of  an  all-wood  building.  Dr.  Luiggi  suggested  that  these 
buildings  be  supplied  without  roofs.  Rubberoid  roofs 
have  been  experimented  with  in  Italy,  but  on  account  of 
the  winds,  and  other  conditions,  they  do  not  seem  to  have 
proven  satisfactory.  Instead,  roofs  might  be  made  of 
tiles  and  slate,  which  are  better  and  plentiful.  Mr.  Col- 
lier, of  the  Ingersol  Rand  Company,  can  furnish  informa- 
tion relative  to  the  cement  guns  referred  to. 

Summing  up,  the  needs  of  reconstruction  in  Italy  are 
as  follows: 

Agricultural  Machinery : 

Pump  machinery  for  drainage  of  land;  trench  dig- 
ging machines,  plows,  sowing  drills,  tractors,  thrash- 
ing machines,  drills  for  breaking  up  the  land  by  ex- 
plosives, etc. 

Lumber : 

For  repairing  houses  and  fishing  ships ;  about  20,000 
tons  per  annum. 

House  Building  Machinery: 

Elevators  for  building  materials,  concrete  and  cement 
mixers,  excavators,  brick  presses,  concrete  block 
making  machines,  cement  guns,  etc. 

Machines  For  Fishing  Industry: 

Motors  for  ships,  net  making  machinery,  refrigera- 
ting plants  and  trucks  for  fresh  fish  transportation, 
etc. 

The  type  and  the  number  of  these  machines  can  only 
be  fixed  after  visiting  the  factories  that  produce  them. 

Dr.  Luiggi  expressed  also  the  possibilities  of  hydro- 
electric power  in  Italy.  He  stated,  that  of  a  possible  3 1/2 
to  4  million  h.  p.  available,  only  1,500,000  was  utilized. 
It  is  desirable  to  utilize  this  power,  but  lack  of  money  at 
the  present  time  prevents  its  development.  Steel  pipes, 
transformers  and  other  equipment  will  be  required. 

It  is  suggsted,  that  American  and  Italian  interests  be 
combined  for  the  purpose  of  developing  this  hydroelec- 
tric power.  Heavy  trains  can  be  handled  over  grades 
incident  to  mountain  lines,  particularly  in  the  central  sec- 
tions of  the  country,  if  the  above  can  be  effected.  The 


THE  INTERNATIONAL  TRADE  CONFERENCE        387 

money  necessary  for  these  improvements  can  be  returned 
in  the  course  of  some  ten  to  twenty  years.  Mr.  Rice, 
Chairman  of  the  Reconstruction  and  Supplies  Committee, 
referred  the  Mission  to  Mr.  Babb,  of  the  Allis-Chambers 
Company,  of  Milwaukee,  interested  in  the  manufacture 
of  water  wheels.  Dr.  Luiggi  suggested  that  the  develop- 
ment of  these  interests  would  enable  Italy  to  amply  re- 
pay the  United  States  for  funds  so  employed. 

The  harbors  at  Genoa,  Naples  and  Venice  all  require 
improvements  involving  heavy  expenditures.  Some 
$5,000,000  to  cover  the  cost  of  dredges  and  other  heavy 
machinery,  such  as  we  have  used  on  the  Panama  Canal, 
will  be  necessary.  This  project,  he  thinks,  is  of  such 
vital  interest  that  American  engineers  and  executives 
should  visit  Italy  for  the  purpose  of  investigation.  The 
enlargement  of  the  Genoa  harbor  has  just  been  approved 
by  the  Italian  Government.  This  will  involve  the  filling 
in  of  some  3,000,000  square  meters  to  provide  space  for 
warehouses,  etc,,  in  that  it  is  physically  impossible  to 
make  further  expansion  landward,  owing  to  the  moun- 
tains. The  earth  dredged  will  be  used  for  filling  in  the 
areas  contemplated.  It  is  estimated,  that  it  will  cost  150,- 
000,000  lire,  and  that  the  land  can  then  be  sold  at  approx- 
imately 300,000,000  lire.  The  Government  is  ready  to 
pay  instalments  up  to  50,000,000  lire.  American  execu- 
tives, engineers  and  contractors,  are  desired  in  connection 
with  the  harbors  and  hydro-electric  work,  because  of  their 
familiarity  and  proven  ability  to  execute  similar  contracts 
quickly.  Italy  would  want  to  control  on  a  basis  of  51%. 
Mr.  Salmon,  of  the  General  Railway  Signal  Company, 
Rochester,  N.  Y.,  advised  that  the  New  York  State  Barge 
Canal  was  practically  completed,  and  that  possibly  in  the 
near  future  the  equipment  used  in  this  project  could  be 
had.  It  was  suggested  that  information  be  secured  and 
submitted  to  Dr.  Luiggi. 

Mr.  Ranney  of  the  National  Implement  &  Vehicle  As- 
sociation, requested  information  from  the  Italian  Mis- 
sion, as  to  embargoes  and  restrictions  existing  on  trac- 
tors, and  other  articles  at  the  present  time.  Mr.  Quat- 


388        THE  INTERNATIONAL  TRADE  CONFERENCE 

trone,  of  the  Italian  State  Railways,  New  York,  stated 
in  answer,  that  temporarily  certain  restrictions  and  limits 
were  necessary  on  account  of  exchange.  Mr.  O'Reilly, 
Vice  Chairman,  of  the  Reconstruction  and  Supplies  Com- 
mittee, asked  if  this  did  not  apply  only  to  cash  payments. 
Mr.  Quattrone's  answer  gave  the  impression,  that  it  ap- 
plied generally.  Mr.  O'Reilly  further  stated,  that  he 
hoped  and  assumed  that  exchange  is,  however,  merely  a 
matter  of  temporary  import.  Dr.  Luiggi  also  stated, 
these  embargoes  are  temporary,  and  that  if  Italy  secures 
large  American  loans,  the  exchange  will  drop,  and  that 
after  these  loans  have  been  consummated,  the  embargoes 
would  be  raised.  Mr.  Quattrone  asked,  that  the  ques- 
tion of  credits  not  be  considered  so  essential  as  that  of 
imports  from  Italy.  They  have  great  quantities  of  sul- 
phur, marble  and  asphalt,  and  he  thinks  a  combination  of 
American  and  Italian  interests  might  be  of  material  ad- 
vantage to  both  countries. 

Marble  is  also  restricted  from  American  markets, 
which  should  be  remedied,  in  order  to  develop  exports  to 
America  and  decrease  exchange.  America  previously  pur- 
chased large  quantities  of  marble  from  Italy,  and  the 
Italian  Mission  is  interested  in  having  this  business  re- 
newed. 

It  was  suggested  that  Italian  engineers  and  dealers  fre- 
quently come  to  America  to  absorb  American  ideas; 
whereas  this  is  not  reciprocated  on  the  part  of  Ameri- 
can interests.  It  was  urged,  that  this  be  done.  Italy 
is  very  anxious  to  encourage  mutual  interests  and  earn- 
estly requests  that  American  executives  keep  in  closer 
touch  with  their  possibilities.  Co-operation  might  be  also 
arranged  in  respect  to  shipbuilding.  The  Mission  espe- 
cially invites  American  interests  and  shipbuilding  experts 
to  study  this  phase  of  their  requirements. 

Large  quantities  of  manganesite  were  exported  from 
Italy  and  from  Austria  and  Hungary  through  Italy  to  the 
United  States.  At  the  present  time,  California  and 
Washington  are  developing  manganesite,  said  to  be  equal 
that  furnished  by  Greece,  Austria  and  Hungary,  but  in- 


THE  INTERNATIONAL  TRADE  CONFERENCE        389 

f  erior  to  Italian  manganesite.  This  condition  together  with 
the  cost  of  transportation  has  greatly  reduced  the  import 
of  manganesite  to  the  United  States,  which,  of  course,  is 
felt  by  Italy.  The  price  before  the  war  was  $16.00  per 
ton,  at  New  York.  The  price  now  approximates  $35.00 
to  $40.00  per  ton.  In  other  words,  the  Western  product 
can  be  delivered  very  much  lower  in  cost  than  that  im- 
ported. In  addition,  Congress  passed  a  bill  placing  a  duty 
of  $15.00  per  ton  on  imported  manganesite,  all  of  which 
means  that  the  situation  is  rather  indefinite  at  present. 
Dr.  Luiggi  stated,  the  Italians  were  doing  their  very  best 
to  lower  exchange,  and  to  bring  about  these  improved 
conditions.  Prior  to  the  war,  they  were  shipping  large 
quantities  of  mercury  to  all  of  the  Allies.  Italy  also  pro- 
duces large  quantities  of  asphalt  and  borax,  which  they 
are  anxious  to  export.  Dr.  Luiggi  stated  the  main  in- 
terest of  the  Mission  is  to  lower  exchange  permitting 
trade  here  in  order  not  to  be  driven  to  other  markets 

It  was  stated  that  because  many  workmen  in  Italy 
were  not  busy  possibly  unfinished  articles  could  be 
shipped  from  this  country  to  Italy  for  completion  by  Ital- 
ian labor,  which  might  further  reduce  the  cost.  Raw 
materials  and  machinery  for  the  manufacture  of  finished 
products  for  export  to  Turkey  through  Italy,  and  the 
Near  East,  iy  a  subject  contemplating  the  extension  of 
trade  in  that  direction,  and  in  addition,  boots,  shoes, 
clothing,  etc.,  partly  prepared  here,  and  completed  in  Italy 
would  find  ready  sale  and  develop  trade. 

Mr.  Quattrone,  appealed  to  the  Committee  relative  to 
the  previous  suggestion,  that  our  practical  men  go  to 
Italy,,  and  co-operate  with  their  labor.  He  stated  that 
many  of  our  people  visited  Italy,  but  that  as  a  rule  they 
came  in  appreciation  of  the  artistic  side  of  his  country, 
and  that  wb:;le  that  was  pleasing,  he  wishes  our  leaders 
to  see  the  possibilities  of  co-operation  industrially,  and 
that,  accordingly  they  come  quickly  for  purposes  of  in- 
vestigation along  these  lines. 

Dr.  Luiggi  closed  by  stating  that  Italy  must  have  help 
of  raw  materials.  England  does  not  feel  her  losses  so 


390        THE  INTERNATIONAL  TRADE  CONFERENCE 

much.  France  has  suffered  in  the  loss  of  men,  and  that 
this  is  true  of  Belgium,  but  that  in  business,  Italy  has 
probably  suffered  more  than  others.  He  stated,  that  62% 
of  their  Merchant  Marine  was  destroyed,  and  that  only 
the  smaller  vessels  were  left,  and  that  these  were  not 
adapted  for  the  purpose  of  export  of  merchandise.  He 
stated  they  have  large  shipyards  and  plenty  of  work- 
men, but  little  raw  material,  so  that  the  providing  of  raw 
material  is  essential  for  the  rapid  industrial  recovery  of 
Italy,  and  the  money  could  be  easily  returned. 

The  inhabitants  of  Italy  now  total  about  40,000,000. 
Of  these,  38,000,000  live  by  agriculture  and  all  farmers 
are  very  law-abiding  citizens,  leaving  a  balance  of  2,000,- 
000  for  shipping  and  industries.  The  people  are  gener- 
ally satisfied  with  conditions.  He  thinks  order  will  be 
kept  throughout  the  country,  and  that  few  disturbances 
we  read  of  in  the  papers  originate  in  thickly  settled  in- 
dustrial centers,  and  are  quickly  abated  by  the  rural  pop- 
ulation which  means  order. 

Foodstuffs  for  a  while  will  also  be  necessary,  especially 
wheat,  and  meats  and  fats  may  be  required  in  certain 
quantities.  Dr.  Luiggi  thinks  that  after  arrangements 
for  co-operation  have  been  effected,  and  that  sufficient 
influence  among  our  banks  and  large  industries  have  been 
arranged  to  develop  these  improved  conditions,  the  rela- 
tions will  mutually  and  eminently  satisfactory. 


MEETING 
WEDNESDAY,  OCTOBER  22,  2:15  P.  M. 

FRANCE. 

The  French  Committee,  represented  by  M.  le  Comman- 
dant Varaigne  and  Mr.  Pesson-Didion,  M.  Tirman  and  M. 
Parmentier,  were  received  by  the  Reconstruction  Supplies 
Committee,  the  following  members  being  present: 

E.  W.  RICE,  Chairman. 

GEORGE  A.  O'REILLY,  Vice-Chairman  and  Secretary. 

WM.  D.  SOUTHWICK,  Assistant  Secretary. 


THE  INTERNATIONAL  TRADE  CONFERENCE        391 

W.  M.  CHAMBERLIN,  Assistant  Secretary. 

MAX  W.  BABB. 

C.  S.  BRANTINGHAM. 

J.  H.  BURTON. 

C.  L.  CORNELL. 

J.  B.  DOAN. 

DR.  J.  T.  DURYEA. 

CHARLES  A.  GOODMAN. 

CHARLES  E.  HILDRETH. 

STEPHEN  C.  MASON. 

JOHN  W.  MCCLURE. 

GEORGE  A.  RANNEY. 

W.  W.  SALMON. 

HAMILTON  STEWART. 

Major  de  Varaigne,  head  of  the  French  Mission  asso- 
ciated with  the  American  Services  in  Paris  during  the 
war,  read  a  review  of  the  present  situation  in  France 
relative  to  reconstruction  suppiles,  a  copy  of  which  is  at- 
tached. 

This  report  covers  a  general  discussion  of  the  subject. 

France  intends  to  follow  the  example  of  her  friends  in 
the  West.  She  will  use  improved  machinery  in  an  effort 
to  offset  her  loss  of  man  power.  The  nation  does  not  ex- 
pect to  require  outside  assistance  in  respect  to  farm  ma- 
chinery with  the  exception,  perhaps,  of  harvesting 
machines,  binders,  etc.  The  large  number  of  motors, 
tractors  and  other  devices  on  hand  following  the  war  will 
be  applied  quite  generally  to  agricultural  and  other  peace 
requirements. 

Lumber  will  be  essential  for  building  purposes.  The 
Baltic  and  White  Sea  sections,  have  supplied  a  portion  of 
these  needs  in  the  past.  France  intends  to  purchase  as 
much  as  is  possible  from  her  own  colonies  in  order  to 
favorably  affect  the  exchange  rate.  Many  of  the  railroad 
ties  purchased  by  France  and  the  Allies,  remain  on  hand, 
and  in  such  quantities  as  to  make  it  possible  to  divide 
with  other  devastated  areas  where  railroad  reconstruction 
is  contemplated  and  under  way.  Only  certain  specialties 
in  wood  and  lumber  will  be  imported  from  the  United 
States. 

Silica  brick  for  lining  furnaces  and  other  requirements 
of  a  similar  nature,  will  be  imported  from  Greece  and 
Italy.  The  latter  country  is  developing  large  interests 
in  ores  of  this  nature.  France,  herself,  will  supply  an 
appreciable  percentage  of  these  products. 


392        THE  INTERNATIONAL  TRADE  CONFERENCE 

It  is  the  intention  of  the  French  to  import  from  those 
sources,  where  they  do  not  owe  money  in  order  to  facil- 
itate the  payment  of  their  debts  to  creditor  nations. 

It  is  true,  that  the  switch  and  signal  system  of  the 
French  railways  are  operated  largely  by  hand.  Only  a 
small  number  of  freight  trains  are  controlled  by  air.  It 
is  admitted,  that  the  larger  cars,  longer  trains  with 
automatic  control,  as  practiced  in  the  United  States,  are 
far  superior  to  the  small  French  car  controlled  by  brake- 
men,  one  to  every  five  cars  and  indifferent  schedules.  The 
customs  of  any  country  are  difficult  to  change.  Our  sys- 
tems are  needed.  Before  the  war,  it  was  difficult  to  in- 
augurate a  change  in  methods  because  the  five  great  rail- 
roads were  directed  by  engineers  who  are  not  inclined  to 
interfere  with  existing  methods.  Conditions  have 
changed,  and  there  is  now  a  bill  before  the  French  Par- 
liament, which  provides  an  administrative  body  for  the 
country's  railway  system,  which  will  specify  modern  de- 
vices for  the  safe  and  efficient  operation  of  trains.  Am- 
erican assistance  in  this  respect  will  be  greatly  appre- 
ciated. Freight  cars  will  have  a  capacity  of  fifty  tons. 
Generally,  the  small  cars  will  be  replaced. 

It  is  the  belief  that  the  French  working  man  is  going 
to  take  hold  and  do  his  part  in  the  upbuilding  of  the 
country.  It  is  difficult  to  determine  now  nearly  sufficient 
the  present  supply  of  labor  will  be  to  the  requirements. 
Especially  is  this  true  of  trained  or  expert  leaders.  Wages 
is  an  element  for  consideration.  It  is  not  known  what 
percentage  of  labor  may  be  had  from  Germany,  if  any, 
in  accordance  with  the  Peace  Treaty.  This  question  has 
not  been  settled.  Emergency  problems  in  respect  to  labor 
are  likely  to  remain  a  possibility. 

It  is  not  believed  the  labor  situation  in  France  is  as 
serious  as  that  of  the  United  States.  America  has  gone 
as  far  as  she  can  in  supplementing  man  power  with 
machinery.  France  still  can  improve  in  this  respect. 
United  States  has  raised  its  labor  forces  to  such  an  eleva- 
tion, that  they  cannot  go  higher  without  the  risk  of  a 
blow-up  economically.  France  has  not  yet  reached  the 
limit  to  which  she  can  make  concessions  to  labor.  Hence, 
France  has  a  considerable  margin  to  rely  on  in  further 
developments.  France  is  insured  against  bolshevism  to 
a  large  extent,  because  the  peasants  either  own  outright 
or  are  directly  interested  in  much  of  their  land.  Fully 
90%  of  the  farms  are  in  their  hands.  The  profits  of  the 
soil  will  be  worth  more  following  the  war  than  before. 

France  intends  to  export  the  same  pre-war  specialties; 


THE  INTERNATIONAL  TRADE  CONFERENCE        393 

silks,  perfumeries,  canned  peas  and  other  vegetables, 
French  macaronis,  etc.  However,  a  diversity  of  lines  for 
export  is  contemplated,  for  instance,  the  country  now  has 
two  million  tons  of  steel  for  export,  but  doubts  the  op- 
portunity of  a  ready  market  at  present.  These  products 
will  be  shipped  wherever  there  is  a  source  of  demand. 
It  will  all  favorably  affect  the  rate  of  foreign  exchange. 
That  the  rate  of  exchange  will  improve  is  certain. 

The  Chamber  of  Commerce  is  requested  to  submit  the 
list  of  machine  tools  required  by  France,  and  submitted 
at  this  conference  to  the  American  Tool  Builders'  Asso- 
ciation. It  is  believed,  the  association  will  co-operate  to 
the  limit  in  securing  these  machines  under  the  most  fa- 
vorable conditions  of  price,  credit,  etc.  Reference  is  also 
made  to  the  large  number  of  such  tools  in  the  hands  of 
the  United  States  Government,  in  addition  to  those  in 
France,  which  were  included  in  the  sale  of  surplus  sup- 
plies to  that  country. 

Russia,  Roumania,  Turkey,  Servia  and  South  America 
are  all  debtor  nations  to  France.  Exports  will  be  directed 
as  far  as  possible  to  these  countries  for  obvious  reasons. 

With  further  reference  to  steel :  France  exported  steel 
and  steel  products  before  the  war.  She  was  the  second 
largest  exporter  of  iron  ore  during  that  period.  Much 
pig-iron  was  exported  to  England.  Coal,  too,  has  always 
been  an  important  item  of  export.  France  supplied  the 
Allies  with  tanks,  shells,  light  and  heavy  guns.  The 
United  States  purchased  $300,000,000  in  field  guns  alone. 
Purchasing  these  supplies  from  France,  effected  a  marked 
saving  in  tonnage.  The  shipyards  of  France  were  mak- 
ing war  material.  This  explains  the  decrease  in  foreign 
business  during  the  war,  and  the  great  shortage  of  essen- 
tials to  the  future  of  France  as  prevails  today.  The  great 
Creusot  Works,  is  now  preparing  to  manufacture  mining 
and  other  peace  machinery.  These  plants  are  all  being 
re-established  to  meet  peace-time  requirements,  and  it 
is  believed  that  in  the  near  future  conditions  will  ap- 
proach normal. 

The  canals  of  France  are  to  be  improved,  enlarged  and 
used  under  much  more  favorable  conditions.  Larger 
barges  will  be  constructed.  These  means  of  communi- 
cation with  the  eastern  boundaries  of  the  country  will 
greatly  facilitate  the  exchange  of  supplies.  The  Seine  is 
to  be  improved,  which  includes  deeper  water  at  Paris. 
The  plan  is  a  large  one  and  contemplates  work  which 
will  involve  the  most  improved  engineering  equipment, 
dredges,  shovels,  etc.  Cheaper  transportation  rates  will 


394        THE  INTERNATIONAL  TRADE  CONFERENCE 

prove  one  of  the  marked  advantages.  America's  work 
on  the  harbors  at  Brest,  and  other  ports,  has  greatly 
impressed  the  French  nation.  Ten  million  dollars  is  the 
sum  contemplated  for  these  improvements. 

Food  products  are  to  receive  special  attention.  Algeria 
offers  great  possibilities  for  wheat  when  means  of  trans- 
portation have  been  effected,  and  France  expects  to  ex- 
port considerable  quantities  of  this  essential. 

In  Alsace  and  other  sections,  it  is  contemplated  to  use 
the  great  water  power  facilities  for  furnishing  cheap 
power  throughout  the  adjacent  sections.  Railways  oper- 
ating with  this  power  will  afford  cheap  and  efficient  con- 
nections with  the  Rhine.  Large  power  plants  with  great 
capacity  and  modern  equipment,  will  be  used  instead  of 
smaller  and  more  scattered  units  involving  more  labor, 
etc.  An  outline  of  these  proposed  improvements  is  at- 
tached. 

The  imports  from  Germany,  in  1913  and  1914,  naturally 
included  the  products  of  Alsace  and  other  sections  now 
within  the  boundaries  of  France.  Potash  interests  are 
to  be  enlarged.  Formerly,  Germany  syndicated  the  out- 
put, limiting  the  extent  in  order  to  control  prices,  etc. 
Certain  supplies  will  be  imported  from  Germany,  and  the 
costs  applied  on  the  debt  of  that  country  to  France. 

Summed  up,  the  question  of  sources  of  supply  for 
France,  are  covered  in  the  words  of  Major  de  Varaigne, 
who  stated,  France  intends  to  buy  where  she  can  get  the 
best  goods  at  the  best  prices. 

The  "Lists  of  Importations  from  Germany  into  France 
in  1912  and  1913,"  published  by  the  Institut  Francais 
aux  Etats-Unis,  599  Fifth  Avenue,  New  York,  affords  in- 
formation, which  will  enhance  the  value  of  this  report  if 
a  copy  can  be  had  and  included. 


REPORT  BY  M.  LE  VARAIGNE  ON  RECONSTRUCTION  NEEDS 

OF  FRANCE. 

I  have  been  trusted  with  the  mission  of  answering  your 
questions,  and  give  you,  as  far  as  possible,  any  kind  of 
information  you  would  require,  about  the  work  of  recon- 
struction to  be  completed  in  France,  as  well  as  about  the 
special  supplies  required  for  this  work.  In  order  to  per- 
form this  task,  I  have  thought  that  it  would  perhaps  be 
of  interest  to  you  to  have,  first,  a  general  idea  of  what 
this  work  of  reconstruction  may  be,  to  what  kind  of  de- 


THE  INTERNATIONAL  TRADE  CONFERENCE        395 

struction  it  applies,  and  in  which  proportion  for  each 
kind. 

I  suppose,  too,  that  it  would  be  important  for  your 
information  to  give  you  some  figures,  explaining  what 
was  to  be  done  at  the  time  when  the  armistice  was  signed, 
what  has  already  been  done,  what  remains  to  be  done. 

But,  you  could  not  understand  completely,  even  with 
figures,  what  this  work  of  destruction  accomplished  by 
the  Germans  amounted  to,  what  it  really  meant  for  pop- 
ulations entirely  deprived  of  the  means  of  earning  their 
livelihood,  if  I  should  not  indicate  to  you  first,  the  terrible 
method  with  which  the  enemy  acted,  upon  a  perfectly 
elaborated  plan,  to  wreck  our  means  of  production. 

In  order  to  enlighten  the  question,  we  shall  follow  the 
development  and  the  execution  of  this  plan. 

At  the  very  beginning,  the  German  requisitions  in  the 
occupied  territories  were  limited  to  the  necessities  of  the 
zone  of  the  armies,  but,  from  January,  1915,  the  enemy 
began  to  get  hold,  by  means  of  requisition,  of  all  the 
goods  which  could  not  be  brought  to  him  from  overseas 
any  more;  coffee,  rubber,  wool,  cotton,  clothes,  tissues, 
etc. 

Then,  the  Germans  decided  to  transfer  into  Germany, 
all  our  machinery  in  order  to  strengthen  themselves,  and 
at  the  same  time  to  weaken  us.  For  this  purpose  an 
official  organization  called  B.  D.  K.  was  created,  under 
the  supervision  of  the  Minister  of  War.  The  first  task 
accomplished  by  this  organization  was  to  make  an  in- 
ventory to  classify  and  indicate  to  the  German  Indus- 
trials, all  the  machinery  existing  in  the  plants  of  the 
invaded  regions  in  Belgium  and  Northern  France.  The 
German  Industrials,  acting  upon  this  information,  and 
often  after  a  personal  inquiry  on  the  spot,  bought  any 
material  that  happened  to  be  convenient  to  them,  giving 
for  this  a  percentage  benefit  to  the  said  organization, 
which  made  enormous  profits  out  of  this  trade. 

At  the  same  time,  with  that  civil  requisition  the  mili- 
tary service  drew  equally  from  our  plants,  all  kinds  of 
supplies,  the  first  opportunity  being  given,  however,  to 
the  B.  D.  K.  organization. 

As  a  manner  of  payment,  the  French  or  Belgian  In- 
dustrials would  receive  requisition  bonds  bearing  no  in- 
dication of  value,  but  only  a  very  brief  and  often  incom- 
plete description  of  the  material. 

The  requisitions  made  by  the  B.  D.  K.  applied  not  only 
to  machinery,  but  also  to  railroad  equipment,  cranes, 
even  to  building  frames. 


396        THE  INTERNATIONAL  TRADE  CONFERENCE 

In  many  plants,  when  all  the  raw  materials  and  ma- 
chinery had  been  transferred  to  Germany,  the  frame 
was  minutely  enumerated,  then  dismounted  and  sent  to 
be  remounted  in  Germany. 

After  this  period  of  utilization,  came  a  period  of  de- 
struction. To  fill  their  blast  furnaces  and  open  hearth 
furnaces,  deprived  of  most  of  their  pig  iron,  by  the  lack 
of  transportation,  the  Germans  put  into  pieces  with  the 
blow  pipe,  the  metallic  frames  of  the  works,  and  trans- 
formed in  scrap  iron  the  special  machinery,  which  it  was 
impossible  to  transport. 

They  succeeded  in  this  way  in  reducing  by  75%,  the 
difficulties  of  transportation  of  the  raw  materials,  but  de- 
stroyed by  90%  to  95%  the  value  of  that  machinery,  and 
thus  sentenced  to  death  the  robbed  plants,  taking  into 
consideration  the  difficulties  and  duration  of  time  that 
would  be  necessary  to  replace  that  fundamental  equip- 
ment. 

Such  destruction  was  carried  on  without  interruption, 
until  the  end  of  the  war,  and  even  after  the  armistice 
was  signed. 

On  the  23rd  of  November,  1918,  a  letter  sent  by  an 
inhabitant  of  a  town  near  to  a  German-Belgian  border, 
and  yet  occupied  by  the  enemy,  read  as  follows : 

"We  are  full  of  joy  and  exultation,  the  last  Boche  rob- 
bers will  leave  us  within  two  or  three  days.  They  have 
continued  to  destroy  and  plunder  until  the  last  minute." 

At  that  time,  the  German  Kaiser  had  already  signed, 
and  the  military  party  was  no  more  the  leader  of  Ger- 
many. This  is  the  best  evidence  that  all  the  German 
people  are  fully  responsible  for  those  destructions. 

Those  requisitions  were  not  in  any  way  commanded  by 
military  necessities,  and  their  issues  were  already  in- 
tended for  civilians. 

As  an  evidence  of  this  information,  there  is  a  transla- 
tion of  an  article  published  by  the  "Nordentsche  All- 
gemeine  Zeitung,"  in  August,  1918,  which  is  as  follows: 

"Tools  and  construction  materials,  coming  from  the  oc- 
cupied territories  will  shortly  be  given  to  German 
farmers,  industrials  and  traders." 

"The  intermediaries"  speculation  will  be  avoided  by  any 
possible  means.  There  are,  in  those  stocks:  Pioneer 
tools,  tools  for  iron  and  lumber  industries,  for  pipe  con- 
struction, for  concrete  makers,  light  apparatus,  cables, 
etc." 

This  is  the  best  proof  that  military  requisition  has 
been  conducted  in  a  way  entirely  contradictory  to  the 


THE  INTERNATIONAL  TRADE  CONFERENCE        397 

stipulations  of  the  Hague  Convention,  for  the  only  bene- 
fit of  civil  enterprises,  far  away  from  the  zone  of  armies. 

The  enemy  could  not  even  try  and  justify  those  requisi- 
tions by  the  necessities  resulting  for  him  from  the 
blockade. 

He  has  actually  attempted  to  sell  his  surplus  in  neutral 
countries.  Offers  have  been  made  by  advertisements, 
notably  in  Holland  and  in  Sweden,  and  the  Allied  diplo- 
macy had  to  intervene  to  stop  such  sales. 

If  one  remembers  that  the  B.  D.  K.,  an  organization  de- 
pending upon  the  Ministry  of  War,  was  given  a  per- 
centage benefit  on  all  these  operations,  one  cannot  but 
conclude  that  the  Germans  have  transformed  the  military 
requisition  into  an  immense  and  profitable  commercial 
enterprise. 

If  you  add  to  those  systematic  destructions  the  ravages 
made  by  the  war  itself;  the  towns  and  villages  blown  up 
and  put  into  flames  by  the  incessant  firing  of  the  guns; 
fields  overturned  by  the  battle  raging  for  four  years  on 
their  soil,  which  is  the  total  of  the  damages  ? 

A  few  figures  for  each  of  the  branches  in  which  de- 
structions were  operated  will  give  you  a  general  idea  of 
the  harm  done  to  France. 


PUBLIC  WORKS. 

Figures  extracted  from  "Journal  Officiel,"  February  10th  and  24th, 
March  21st  and  July  8th,  1919. 

A.  RAILROAD: 

Railroad  lines  destroyed  or  out  of  service 3,027  miles 

Bridges   destroyed 1,510  miles 

Telephone  and  telegraph  lines  destroyed 1,730  miles 

Buildings    destroyed    590  miles 

Water   tanks   150  miles 

Metallic    canalization,    signals    and    metallic 
works  other  than  bridges:   tonnage  to  be 

replaced    20,000  tons 

Construction  or  repair   shops  out  of  order 7 

Warehouses  completely   destroyed 25 

Local  railway  lines  and  tramways: 

Mileage  of  lines  destroyed  or  damaged 850  miles 

Estimate  of  material  damages 416,000,000  francs 


398        THE  INTERNATIONAL  TRADE  CONFERENCE 

B.  WATERWAYS: 

Number  of  miles  to  be  reconstructed 580  miles 

Bridges   entirely   destroyed 450 

Locks  entirely  destroyed  or  seriously  damaged  115 

C.  ROADS: 

National  Roads  : 

Mileage  of  national  roads  damaged 4,800  miles 

Tonnage  of  necessary  materials 2,900,000  tons 

Engineering   feats    destroyed 550 

Approximate  expenses  130,000,000  francs 

Other  Highways: 

Mileage  of  roads  to  be  repaired 52,000  miles 

Tonnage  of  the  necessary  materials 7,500,000  tons 

Number  of  engineering  feats  destroyed 1,500 

Approximate  expense  260,000,000  francs 

2.    INDUSTRIAL  DAMAGES: 

Material.     Buildings.     Raw     Materials.     Manufactured   Products. 

Failure    to    Profit. 
Kind  of  Industries  Affected.        Total  Estimate  of  Damages. 

COMBING  (1500    units) 3,186,480,000  francs 

Cotton  Mills: 

Combed  Wool    2,386,000  spindles 

Carded  Wool  400,000  spindles 

Cotton    3,000,000  spindles 

Flax,  hemp,  jute  500,000  spindles 


12,356,280,000  francs 
WEAVING  : 

Wool    36,000  looms 

Cotton   14,500  looms 

Lin-en    19,700  looms 

Tulles,  laces,  embroideries  1,500  looms 

Total    5,956,160,000  francs 

COAL  MINES: 

For    22-millions    of   tons    extracted  and  for 

re-establishment  of  excavation  works  4,254,400,000  francs 

PRODUCTION  AND  DISTRIBUTION  OP  ELECTRIC  POWER: 

Material,  Lines  and  Accessories : 565,560,000  francs 


THE  INTERNATIONAL  TRADE  CONFERENCE        399 

Kinds  of  Industrials  Affected.  Total  Estimate  of  Damages. 

IRON  MINES: 

Francs 

For    18,000,000,000    tons  extracted    and    for    re- 
establishment  of  excavation  works  about 500.000,000 

Metallurgy  of  Iron  and  rough  metallurgy 11,085,840,000 

Mechanical  construction  and  electric  power 3,731,000,000 

Sail  metallurgy  2,587,580,000 

Breweries    (1,700    establishments) 616,260,000 

Sugar   refineries   , 1,032,920,000 

Distillieries,  agricultural  establishments  761  640,000 

Oil       plants,       110       establishments,       production 

90,000  tons  218  450,000 

Tan-yard   curriers'   shops  174,920,000 

Dying    establishments,    bleaching    establishments 

and   stiff   starching   establishments   475.940,000 

Chemicals  and  industrial   products  4,451,350,000 

Mirror  and  glassware  factories  430,060,000 

Extractive  industries   (4  million  tons) 84,840,000 

Tramways    (393    miles)    132,730,000 

Flour    mills    422,140,000 


Total    53,100.670,000 

3.  POPULATION  AFFECTED  BY  WAR  EVENTS: 
Communes  occupied  by  the  enemy  or  evac- 
uated         4,023 

Total  population  of  ten  stricken  "Depart- 
ments"     4,987,922  inhabitants 

DAMAGES  AFFECTING  FARMING: 

Area  of  farming  lands  damaged  by  the  war 1,800,000  ha. 

Losses    in    farming   implements    362,000  app. 

Losses  in  vehicles,  working  stock  104,000  app. 

LOSSES  IN  CATTLE,  HORSES: 

Heads. 

Oxen  705,000 

Sheep 678,000 

Goats   13,000 

Pigs    225,000 

Asses  and  mules 3,000 

Horses 268,000 


400        THE  INTERNATIONAL  TRADE  CONFERENCE 


5.  DAMAGES  AFFECTING  REAL  ESTATE  PROPERTY: 

pi  >• 

0^2  "71  K^ 


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41,004 

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9,309 

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M.  &  M. 
Vosges     .. 
Totals    . 


The  preceding  figures  may  give  you  a  pretty  accurate 
idea  of  the  work  with  which  France  was  confronted  at  the 
time  when  it  was  possible  for  her  to  count  her  wounds  and 
measure  their  extent. 

However  tremendous  was  such  an  amount  of  work  to 
be  done,  however  far  exceeding  the  resources  in  labor  and 
supplies  of  France  it  may  have  seemed  at  first  sight, 
France  was  not  discouraged  at  it,  and  immediately  set  to 
work,  without  complaining  and  without,  as  it  has  falsely 
been  said,  waiting  for  any  help  from  outside. 

The  best  evidence  of  this  affirmation  will  be  given  to 
you  by  a  new  set  of  figures,  which  will  show  you  the 
extent  of  the  efforts  that  have  already  been  made  by 
France  to  help  herself  and  get  out  of  her  troubles  by  any 
means  she  possessed  offhand. 

Those  figures,  as  you  will  appreciate,  I  have  no  doubt, 
have  the  fullest  significance,  and  will  enable  you  to 
realize,  at  the  same  time,  as  well  the  extent  of  the  work 
that  remains  to  be  done,  as  the  results  obtained  so  far 
by  France  alone  in  the  way  of  getting  on  her  feet  again. 


THE  INTERNATIONAL  TRADE  CONFERENCE        401 

1.  PUBLIC  WORKS: 

(a)    Railroads 

Number  of  miles  remaining  to  be  recon-  j  Double  tracks  820  m. 
structed  when   armistice  was   signed.  |  Single  tracks  400m. 

)   Double  track  720m. 
Number    of    miles    reconstructed    so    farj    gingle    track  37Q  m> 

Number    of    miles    remaining    to    be  constructed,  still 

unserviceable    150m. 

Number  of  stations  still  closed  to  traffic 46 

Engineering   feats   still   to   be   reconstructed .1 160 

Engineering   feats    actually    reconstructed 588 

Telephone  and   Telegraph  lines   destroyed 1.730m. 

Local  Railway  Lines  and  Tramways: 
Mileage  of  lines  destroyed  or  out  of  service 850  m. 

( b )  WATERWAYS  : 

Number  of  miles  to  be  re-established  at  the  Armistice  .  .    580  m. 
Number   of   miles   re-established 375  m. 

2.  AGRICULTURE: 

Total  area  of  the  invaded  territory 3,200,000  H. 

Total  area  of  farming  land 1,800,000  H. 

Total  area  of  land  rendered  to  cultivation 400,000  H. 

Losses  in  oxen  and  horses  (900,000  &  300,000) 1,200,000  H. 

Replacements  already  made 200, 000  H. 

Losses   in   farming  implements 262,000  hp. 

Replacements    already    made 200,000  hp. 

Losses  in  vehicles  and  rolling  stock 104,000  hp. 

Replacements   already  made 16,000  hp. 

Tractors  for  farming  motor  implements  in  service...        2,400 

Seeds  delivered  in   Spring,   1919 572,574  quint 

Seeds    estimated   for   Fall,    1919 328,000  quint 

Fertilizers   delivered   in    Spring,   1919 93,941  quint 

Fertilizers   estimated   for   Autumn,    1919 644,520  quint 

3.  BUILDING  HOUSES: 

Total  of  houses  destroyed  or  damaged  by  the  war 550,000 

Houses    temporarily    repaired 80,000 

Constructions    semi-temporarily 23 ,600 

Barracks    already    fixed .16,225 

Temporary  barracks   and  houses   in  course  of  construc- 
tion or  in  order 60,000 

Material  delivered: 

Bricks 150.000,000 

Bituminous  paper  (February-Aug.- 

ust)  15  millions  of  square  metres 

Transparent  product  4  millions  of  square  metres 


402        THE  INTERNATIONAL  TRADE  CONFERENCE 

4.  LANDS: 

Area  of  lands  covered  by  barbed  wire, 

removed   98 ,800,000  sq.  metres 

Area  of  lands  cleared  out  of  projectiles...  2,194,000 
Number     of     cubic     metres     filled  into 

trenches    54,000,000  cubic  metres 

Number  of  wells  cleaned  17,507 

TRANSPORTS    TAKEN    IN    CHARGE    BY    MINISTRY    OF  DEVASTATED 
REGION  : 

Material  used  10,000  trucks 

4,000  trucks 

Tonnage  handled  weekly  by  kilometres 1,700,000  tons 

Number  of  narrow  gauge  railroads  exhibited 760  miles 

Kilometre  tonnage  weekly  130,00  )  tons 

RECOVERY  OF  LOCALITIES: 

Number    of    communities    occupied    by    the    enemy  evac- 
uated         4,023 

Number  of  communities  back  to  civil  life 3,872 

Number  of  public  schools  before  the  war 4,583 

Number  of  public  schools  opened  on  August  31st 3,000 


ADVANCES  COVERING  WAR  LOSSES. 
(Made  by  the  French  Government) . 

Principal  objects: 

Advances    made   to   people    as  indemnities  for  war 

damages 

Advances  for  immediate  reconstruction. 
Advances  for  furniture. 
Advances  for  agriculturists 

Advances  to  working  men  and  small  merchants,  etc. 
Amount  of  advances  to  these  different  headings  from 

January  1st  to  September  1st,  1919,  1,500,000,000 

francs. 

This  is,  gentlemen,  what  France  has  already  done  in 
the  way  of  reconstruction  during  the  first  eight  months 
of  1919.  If  you  will  take  into  account  the  bulk  of  mater- 
ial and  supplies  of  all  sorts  that  was  to  be  transported 
for  that  work  from  every  part  of  France,  on  a  railway 
system  which  had  already  been  under  the  most  tremend- 
ous pressure  during  the  war,  and  to  which  another 
enormous  effort  was  imposed  for  the  transportation  of 
demobilized  troops,  you  shall  realize  the  immensity  of 
the  task  which  has  already  been  performed. 


THE  INTERNATIONAL  TRADE  CONFERENCE        403 

During  the  six  months  period  from  April  1st  to  Sep- 
tember 30,  1919,  the  whole  military  transportation,  oper- 
ated on  the  French  railway  lines,  as  well  for  the  Ameri- 
can as  for  the  French  army,  necessitated  the  running  of 
about  30,000  trains  of  fifty  cars  each. 

Our  railway  system,  having  now  done  with  such  addi- 
tional burdens,  will  be  more  able  to  meet  the  require- 
ments for  the  reconstruction. 

I  come  now  to  a  new  part  of  this  statement,  to  which 
we  could  give  as  a  headline : 


WHAT  KIND  OF  HELP  CAN  BE  GIVEN  TO  FRANCE  FOR.  HER 
RECONSTRUCTION  WORK? 

Here,  gentlemen,  I  reach  a  most  difficult  part  of  my 
task.  I  shall  try  my  best  to  tell  you  definitely  which 
are  the  requirements  of  France  from  other  countries, 
and  particularly  from  America,  for  reconstruction  pur- 
poses, but  you  must  realize  that  France  has  been  divided, 
for  statistics,  into  two  zones :  the  devastated  one  and  the 
other  regions,  and  that  figures  can  only  be  approximately 
given. 

However,  from  my  first  conversation  with  some  of  the 
gentlemen  in  this  committee,  in  which  they  were  kind 
enough  to  state  before  me,  with  a  great  frankness,  and  in 
a  perfect  spirit  of  cooperation,  what  they  expected  me  to 
explain  to  you,  I  have  come  under  the  impression  that 
any  information  I  should  be  able  to  give  would  be  wel- 
comed by  you. 

In  studying  our  needs  for  reconstruction,  we  must  bear 
in  mind  that,  under  actual  economic  conditions,  and  in 
view  of  the  exchange  market,  it  seems  that  it  is  absolute- 
ly imperative  that  France  should  bend  all  her  energies  to 
increase  her  production  and  restrict  her  importations  to 
the  articles  which  she  cannot  procure  at  home  or  in  coun- 
tries where  the  exchange  works  in  her  favor.  By  so  do- 
ing, she  will  protect  not  only  her  own  interest,  but  the 
interests  of  her  creditors. 

From  this  point  of  view,  our  situation  may  be  summed 
up  as  follows: 

France  should  obtain  from  importing  manufactured 
articles,  and  import  only  the  necessary  raw  materials  to 
feed  her  production.  The  country  helping  us  to  get  the 
needed  raw  materials  will  directly  contribute  to  our  work 
of  reconstruction,  as  it  will  allow  us  to  give  work  to  our 
existing  industries  in  the  whole  country,  and  to  produce 


404        THE  INTERNATIONAL  TRADE  CONFERENCE 

most  of  the  necessary  articles  needed  for  the  preparation 
of  our  devastated  regions. 

In  our  opinion,  the  problem  of  setting  in  motion  our 
production  outside  of  the  devastated  regions,  and  the 
problem  of  restoring  the  devastated  regions  are  but  one 
and  the  same  problem. 

We  will  see,  passing  in  review  our  direct  needs  for 
reconstruction  that  they  can  nearly  all  be  met  by  our 
resources,  provided  that,  on  the  other  hand,  we  will  re- 
ceive the  raw  materials  necessary  to  restart  and  develop 
our  production  in  the  rest  of  the  country. 

In  fact,  the  four  factors  of  the  reconstruction  work  are : 
labor,  materials,  transportation,  and  finally,  organization 
and  execution ;  that  is  to  say,  engineering  and  supervision. 

We  shall  review  successively  those  four  factors,  and 
try  to  get  an  idea  about  the  help  America  could  lend  us : 

A.  Labor: 

I  think  that  we  may,  without  any  hesitation,  state  that 
America,  a  country  already  suffering  from  the  scarcity 
of  labor  and  paying  very  high  wages  to  workmen,  is  not 
in  a  position  to  lend  us  any  assistance  in  this  matter. 

B.  Materials: 

The  principal  materials  which  are  needed  for  the  recon- 
struction, are,  roughly  enumerated,  as  follows:  Lum- 
ber, concrete,  lime  and  cement,  glass  and  other  similar 
products,  stones,  bricks  and  tiles,  slates,  frame  work, 
machinery,  agricultural  machinery,  textile  machinery, 
leather  or  cotton  belting,  hardware. 

A.  Lumber: 

We  were  already  importers  of  lumber  before  the  war, 
for  about  1,230,000  tons.  During  the  war,  the  enormous 
military  requirements  to  which  France  had  to  satisfy 
with  her  own  resources,  have  resulted  in  the  clearing 
of  trees  of  important  areas. 

Owing  to  thse  facts,  the  so  far  made  estimates  provide 
that  in  the  next  few  years,  France  will  have  to  import 
a  minimum  of  three  to  four  millions  of  cubic  metres  of 
lumber  per  year. 

We  hope  to  be  able  to  get  from  our  African  colonies, 
in  which  the  resources  in  lumber  are  enormous,  the 
greater  part  of  our  requirements. 

If  there  is  any  dificit  to  meet,  Sweden,  Norway  and  even 
Bohemia,  can  send  us  the  surplus,  without  counting  Ger- 


THE  INTERNATIONAL  TRADE  CONFERENCE        405 

many,  who  can  very  well  pay  a  part  of  its  indemnity  by 
shipments  of  lumber. 

B.  Concrete — Lime — Cement: 

There  is,  very  likely,  no  help  to  be  asked  for,  by  France, 
for  such  materials.  The  production  before  the  war  was 
in  general  sufficient  for  the  consumption,  and  a  margin 
was  even  left  for  exportation  of  cement.  The  demand 
will  certainly  be  much  greater  in  France  now  than  it 
was  before  the  war,  but  all  the  developments  of  produc- 
tion necessary  to  match  the  requirements  are  under  way. 

C.  Glass  and  Similar  Products: 

The  production  in  France  before  the  war  far  exceeding 
the  local  consumption,  and  a  very  important  surplus  was 
left  for  export  trade. 

We  are,  it  is  true,  deprived  of  a  part  of  our  production 
by  the  destruction  of  an  important  number  of  our  plants 
in  the  North  of  France,  but,  if  for  some  time,  we  are 
compelled  to  import  glass,  we  shall  certainly  find,  in  Bel- 
gium, any  quantity  of  glass  that  we  may  happen  to  need. 

D.  Stones,  Bricks  and  Tiles,  Slates: 

For  air  that  line  of  materials  the  estimation  already 
made  by  exports  provide  equally  that,  however,  important 
the  demand  may  be,  the  resources  of  France,  properly 
utilized,  will  be  sufficient. 

E.  Steel  Frame  Work: 

Restoration  of  Alsace  Lorraine,  whose  iron  and  steel 
industry  was  specialized  in  the  production  of  commercial 
steel,  notably  frame,  gives  us  very  important  supply  of 
this  material,  not  only  sufficient  for  our  present  needs, 
but  leaving  a  substantial  surplus  for  the  export  trade. 

F.  Machinery  : 

In  France,  which  are  the  machine  tools  of  national  pro- 
duction that  can  compete  with  the  imported  machines  ? 

In  the  first  place,,  we  mention  the  engine  lathes,  which, 
with  the  exception  of  a  few  tool-room  lathes,  types  of 
Hendey  Norton,  Rivett  or  special  relieving  machines,  for 
instance,  are  manufactured  under  good  conditions.  We 
estimate  that  the  total  quantity  necessary  can  be  pro- 
duced by  France  in  a  proportion  of  from  3  to  4  and  can 
be  introduced  in  a  proportion  of  from  1  to  4. 

For  the  sensitive,  ordinary,  radical  or  special  drilling 
machines,  one  must  estimate  that  France  can  produce 


406        THE  INTERNATIONAL  TRADE  CONFERENCE 

approximately  a  fourth  of  the  necessary  quantity,  a  half 
at  the  utmost. 

In  order  to  give  a  general  idea  of  the  requirements  in 
machine  tools  for  our  country,  and  the  means  wherewith 
to  satisfy  them,  the  French  Mission  has  drawn  a  schedule 
indicating : 

1.  The  designation  of  the  machines. 

2.  The  total  quantity  necessary  for  a  period  of  ap- 
proximately 12  to  18  months. 

3.  The  proportion  which  can  be  found  in  France,  or 
imported. 

4.  The  approximate  corresponding  value  in  francs. 

I  have  only  one  English  copy  of  it,  which  I  shall  with 
pleasure  lend  to  one  of  you,  and  which  you  could  have 
copied. 

In  conclusion,  it  results  from  this  study,  that  France 
must  produce,  within  18  months,  approximately  16,520 
machine-tools  for  an  approximate  value  of  198,503,000 
francs,  that  it  is  indispensable  to  import  approximately 
37,454  machine  tools  for  an  approximate  value  of  251,- 
367,000  francs. 

As  concerns  small  tools,  one  can  estimate  that  in 
France,  it  is  possible  to  produce  a  half  of  the  necessary 
tools  and  to  import  the  other  half. 

G.  Agricultural  Machinery: 

According  to  information  we  have,  machinery  for  motor 
farming  is  very  little  required  by  France,  and  it  is  esti- 
mated, that  the  French  production,  to  which  may  be  added 
the  great  bulk  of  machinery  already  introduced  in  France 
during  the  war  will  be  sufficient  in  quantity  for  our  needs. 

On  the  contrary,  some  more  accessory  and  harvesting 
machinery,  reapers,  binders,  thrashing  machines,  etc., 
may  be  still  bought  in  America  in  the  near  future, 
though  the  total  amount  does  not  run  into  figures. 

H.  Hardware: 

There  does  not  seem  to  be  any  need  of  importing  hard- 
ware in  large  quantities,  very  considerable  numbers  of 
workshops  having  started  during  the  war  to  the  effect 
of  manufacturing  war  material,  tanks  for  machines, 
artillery  trucks,  etc.,  whose  activities  have  now  been 
diverted  to  the  manufacture  of  hardware. 

/.  Special  Machinery  for  Textile  Industries: 

As  it  has  been  stated  in  the  Textile  Committee,  our 


THE  INTERNATIONAL  TRADE  CONFERENCE        407 

industry  in  the  North  of  France,  has  been  partially  put 
out  of  service  and  robbed  of  its  machinery.  But  an  im- 
portant part  of  the  stolen  material  has  already  been 
brought  back  from  Germany,  and  the  plants  have  been 
put  into  operation  again. 

However,  all  the  machinery  employed  in  France  during 
the  war,  has  greatly  suffered  from  an  intensive  use,  and 
wants  overhauling  and  even  partial  replacement. 

As  far  as  the  cotton  industry  is  concerned,  I  am  able 
to  give  you  some  figures  that  will  indicate  what  will  be 
our  approximate  needs  in  looms  and  spindles  in  the  next 
few  years. 

I  know  for  certain  that  it  would  be  exceedingly  interest- 
ing* for  the  French  textile  industry,  not  only  of  cotton, 
but  of  wool  and  linen,  to  find  in  America  a  part  of  the 
looms  and  spindles  it  will  require. 

Before  the  war,  there  was  in  France  a  total  of  about 
140,000  cotton  looms.  The  return  to  France  of  Alsace 
Lorraine,  will  increase  this  number  by  about  45,000  looms, 
which  gives  a  grand  total  of  about  185,000  looms. 

We  shall  be  near  the  truth  by  saying,  that  in  the  next 
few  years,  we  may  require  yearly,  about  20,000  new 
looms,  that  is  to  say,  a  little  more  than  10%  to  keep  our 
cotton  machinery  in  good  working  condition. 

The  number  of  cotton  spindles  before  the  war  was 
about  1,250,000.  Alsace  Lorraine  will  give  us  almost 
2,000,000  more  spindles.  The  total  of  our  spindles  will 
be  more  than  9,000,000,  for  which  the  same  proportion 
of  replacements  shall  be  necessary. 

For  the  wool  industry,  the  number  of  our  spindles  was, 
before  the  war,  2,600,000.  One  hundred  thousand  more 
spindles  have  been  put  into  operation  and  Alsace  Lor- 
raine brings  back  to  us  500,000  spindles.  The  total  num- 
ber of  our  wool  spindles  will  consequently  reach  3,200,000 
for  the  necessary  replacement  of  which  we  shall  equally 
be  glad  to  count  upon  American  deliveries. 

C.  Transportation: 

This  question,  which  is  being  taken  in  the  Shipping 
Committee,  is  a  very  serious  one.  I  have  already  stated 
in  the  first  part  of  the  present  study,  the  tremendous  pres- 
sure which  has  been,  during  the  last  five  years,  and  espe- 
cially during  the  last  six  months,  put  upon  the  railroad 
system  of  France. 

This  system  is  not  yet  working  in  a  normal  manner. 
But,  a  great  improvement  has  already  been  effected,  and, 


408        THE  INTERNATIONAL  TRADE  CONFERENCE 

it  is  expected,  that  the  situation  will  be  normal  at  the 
end  of  the  present  year. 

The  rolling  stock  recuperation  from  Germany,  as  well 
as  the  American  engines  and  cars  bought  by  the  French 
government  from  your  stock  in  France,  are  sufficient  for 
our  needs.  On  the  other  hand,  our  stock  of  rails  and  ties 
are  numerous  enough. 

What  we  need  is  to  reorganize  on  a  normal  basis  a 
traffic  system  disturbed  by  the  necessities  of  war.  As 
far  as  the  rebuilding  of  roads  is  concerned,  which  means 
a  very  considerable  work,  we  have  the  necessary  raw 
materials  and  machinery. 

D.    Engineering  Work: 

There  remains  to  be  considered  the  general  organiza- 
tion of  the  work,  and,  particularly  the  engineering  con- 
struction work. 

There,  gentlemen,  I  suppose  that  your  co-operation 
could  be  of  a  very  high  value. 

You  know  much  more  about  construction  engineering 
than  anyone  else.  Your  engineers  have  become  masters 
in  the  way  of  building,  in  the  shortest  possible  time,  com- 
plete towns  and  villages. 

I  feel  pretty  sure  that  your  collaboration  in  that  line, 
would  be  a  very  useful  one.  I  am  not  speaking  here  in 
any  official  capacity  as  you  well  know,  but  I  express  a 
personal  opinion  shared  by  many  of  my  friends. 

I  feel  too  much  myself  about  Franco- American  co-oper- 
ation, in  which  I  have  been  engaged  so  completely  during 
the  war,  to  have  any  doubts  upon  the  results  which  that 
new  co-operation  could  obtain,  and,  I  think,  it  would  be 
a  splendid  culmination  of  our  joined  effort  if  your  en- 
gineers would  come  and  help  in  rendering  to  life  those  ter- 
ritories for  the  freedom  and  the  soil  of  which  your  sol- 
diers have  fought  side  by  side  and  heart  by  heart  with 
ours. 


MEETING. 
WEDNESDAY,  OCTOBER  22,  AT  10  A.  M. 

GREAT  BRITAIN. 

The  British  Committee,  represented  by  Mr.  Marshall 
Stevens,  as  Chairman;  Sir  Arthur  Shirley  Benn,  Sir 
James  Hope  Simpson,  C.  B.  Carryer  and  Lieut.  A.  S.  Jar- 


THE  INTERNATIONAL  TRADE  CONFERENCE        409 

ratt,  Assistant  Secretary,  were  received  by  the  Recon- 
struction Supplies  Committee. 

The  following  members  being  present : 

E.  W.  RICE,  JR.,  Chairman. 

GEORGE  A.  O'REILLY,  Vice-Chairman  and  Secretary. 

WM.  D.  SOUTHWICK,  Assistant  Secretary. 

MAJOR  W.  H.  CHAMBERLIN,  Assistant  Secretary. 

BRANTINGHAM,  C.  S. 

BURTON,  J.  H. 

BUSH,  A.  R. 

CORNELL,  C.  L. 

DOAN,  J.  B. 

DURYEA,  DR.  J.  T. 

GOODMAN,  CHARLES  A. 

HILDRETH,  CHARLES  E. 

HOWARD,  C.  C. 

MASON,  STEVEN  C. 

RANNEY,  GEORGE  A. 

SALMON,  W.  W. 

STEWART,  HAMILTON. 

The  British  Commission,  opened  the  discussion  in  a 
statement  to  the  effect  that  they  were  seeking  no  favors 
and  that  their  own  reconstruction  problems  were  being 
solved  without  outside  aid.  They  have  come  primarily  to 
co-operate  with  the  United  States  in  helping  to  re-estab- 
lish those  nations  seriously  impaired  because  of  the  war. 

One  of  their  own  immediate  problems  is  the  housing 
of  their  own  people,  who  have  been  assured  by  the  Gov- 
ernment, that  on  return  of  the  men  everything  that  could 
be  done  for  their  welfare  would  be  effected.  England 
is  now  considering  the  utilizing  of  the  wooden  huts  used 
during  the  war  in  face  of  prejudice  against  this  type  of 
house  prior  to  the  war.  Legislation  prevents  profiteer- 
ing in  rents.  England  is  probably  suffering  more  in 
respect  to  a  shortage  of  housing  than  any  other  nation 
involved  in  the  war. 

In  providing  for  the  devastated  areas  only  those  sup- 
plies actually  needed  should  be  afforded.  Luxuries  and 
non-essentials  should  be  eliminated.  In  order  to  develop 
uplift  and  improve  social  conditions,  an  effort  should  be 
made  to  provide  better  living  conditions  than  prevailed 
before  the  war.  In  view  of  the  fact,  that  the  United 
States  is  more  familiar  with  quickly  constructed  houses, 
than  other  nations,  that  phase  of  the  subject  is  one. 
America  should  especially  undertake  to  solve. 


410        THE  INTERNATIONAL  TRADE  CONFERENCE 

England  is  short  of  transportation,  which  includes 
locomotives,  etc.,  and  there  is  an  urgent  need  for  up-to- 
date  means  of  dealing  with  transportation.  Solving  this 
question  is  a  problem  with  which  they  are  very  much 
concerned  at  present.  The  financial  question  is  more 
pertinent  with  England  than  the  subject  of  reconstruc- 
tion. 

Sir  Arthur  Shirley  Benn,  in  reviewing  the  above,  stated 
that  while  400,000  houses  were  short,  and  should  have 
been  built  within  the  period  of  the  war,  they  were  con- 
fronted now  with  a  possibility  of  only  80,000  buildings 
per  year;  this,  because  of  the  lack  of  the  trained  labor 
required  in  providing  larger  numbers  of  houses. 

England  and  the  United  States,  apparently,  are  doing 
all  that  is  possible  to  prevent  further  inflation  of  prices. 

Sir  James  Hope  Simpson  stated  that  the  supply  of  raw 
material  in  England  is  ample ;  that  they  have  large  stocks 
which,  when  developed  into  finished  products,  will  favor- 
ably affect  the  rate  of  exchange  between  England  and 
America. 

The  Commission  emphasized  the  fact  that  England,  be- 
cause of  her  extensive  financing  of  the  other  Allies  before 
America  entered  the  war,  is  disposed  at  present  to  work 
toward  the  payment  of  her  own  obligations,  instead  of 
assuming  others  by  extending  long-term  credits  to  her 
friends  on  the  continent — the  question  of  financing  the 
long-term  requirements  of  reconstruction  in  the  devas- 
tated areas  is  in  a  large  measure  up  to  the  United  States. 

Considerable  discussion  was  devoted  to  the  question  of 
risk  to  be  assumed  in  financing  reconstruction  require- 
ments. A  rather  sharp  distinction  was  drawn  between 
the  risks  which  could  be  assumed  by  business  men,  and 
those  which  should  be  assumed  by  government.  Refer- 
ence was  made  to  political  risk  in  the  more  newly  estab- 
lished countries  of  Europe,  and  to  the  propriety  of  hav- 
ing this  risk  assumed  by  goverments,  instead  of  by  busi- 
ness men.  The  question  of  exchange  risk  also  was  dis- 
cussed. 

Long  credits  will  be  essential  to  the  conduct  of  busi- 
ness with  countries  affected  by  the  war.  In  Poland,  food 
and  cotton  are  essential.  The  mills  of  Poland  are  ready 
to  resume  operations  as  soon  as  raw  cotton  can  be  sup- 
plied. This  will  furnish  labor  for  many  idle  people,  and 
will  serve  to  stabilize  conditions.  In  all  devastated  coun- 
tries, tools  and  agricultural  machinery  are  the  require- 
ments. Particularly  does  this  apply  to  South  Russia. 


THE  INTERNATIONAL  TRADE  CONFERENCE        411 

Shipments  have  already  been  made  to  these  territories, 
and  in  several  cases  the  principle  of  barter  of  commodities 
was  applied  directly  with  good  results.  Summed  up,  the 
essential  is  a  supply  of  sufficient  raw  materials,  and  the 
means  with  which  to  reproduce  the  necessities.  This  is 
a  work  of  humanity  and  will  serve  to  stabilize  political 
conditions. 

The  British  Commission  stated  that  these  supplies  from 
impoverished  countries  could  be  better  supplied  and 
financed  by  America  than  by  any  other  country,  and  that 
an  American  Commission  might  find  it  advisable  to  be 
on  the  spot  in  European  countries  to  approve  such  ship- 
ments as  were  brought  in,  to  arrange  the  securities,  and 
to  eliminate  the  requisitioning  of  unnecessary  luxuries. 

The  Commission  was  anxious  to  have  the  Committee  on 
Reconstruction  and  Supplies  know  that  these  remarks  and 
suggestions  were  purely  of  a  sympathetic  and  co-opera- 
tive nature ;  that  they  were  not  presuming  to  tell  us  what 
we  should  do,  and  that  it  was,  of  course,  our  privilege  to 
determine  just  how  far  we  should  go. 


MEETING. 
OCTOBER  20,  2:15  P.  M. 

BELGIUM. 

The  Belgian  Committee,  represented  by  M.  Canon  Le- 
grand,  M.  Neve,  M.  Van  den  Ven,  were  received  by  the 
Reconstruction  Supplies  Committee. 

The  following  members  being  present: 

BABB,  MAX  W. 
BURTON,  J.  H. 
BUSH,  A.  R. 
HITCHCOCK,  C.  U. 
FILENE,  ED.  A. 
CORNELL,  C.  L. 
DOAN,  J.  B. 
FLETCHER,  ANDREW. 
GOODMAN,  CHARLES  A. 
RANNEY,  GEORGE  A. 
SALMON,  W.  W. 
STEWART,  HAMILTON. 

The  Chairman,  Mr.  Rice,  of  the  General  Electric  Com- 


412        THE  INTERNATIONAL  TRADE  CONFERENCE 

pany,  requested  that  the  Belgian  Commission  state  its 
views  as  to  requirements  of  Belgium  for  reconstruction 
supplies. 

A  general  discussion  on  the  part  of  members  of  both 
committees  followed,  of  which  the  following  is  a  general 
outline : 

M.  Canon-Legrand  advised  that  steel  works,  metal 
works,  and  similar  industries,  were  in  need  of  general 
equipment.  There  is  some  interest  at  the  present  time 
in  fuel  oil. 

They  have  used  large  quantities  of  coking  coal,  which 
was  originally  secured  from  Germany,  in  addition  to  their 
own  output. 

Mr.  Andrew  Fletcher,  President,  The  American  Loco- 
motive Company,  advised  at  this  point,  that  contracts 
had  been  let  at  the  present  time  for  some  twenty  or  more 
oil  tankers  for  Belgian  trade. 

M.  Canon-Legrand  stated  that  iron  was  not  required. 
Other  metals — tin,  lead,  etc. — while  of  interest,  were  not 
necessary. 

M.  Canon-Legrand  advised  that  machine  tools  were  of 
vital  interest  to  Belgium  at  the  present  time.  He  stated, 
that  his  factories  had  been  completely  stripped  of  such 
equipment,  and  had  been  used  by  the  Germans  for  their 
own  purposes,  prior  to  the  time  they  evacuated,  at  which 
time,  as  above,  they  took  with  them  all  equipment.  He 
further  stated,  that  some  two  thousand  machines  of  the 
above  character  had  been  ordered  from  the  United  States 
Government ;  that  selection  of  the  various  types  had  been 
completed,  and  that  he  had  had  a  'phone  message  from 
Washington,  to  the  effect,  that  they  were  ready  to  ship 
as  soon  as  transportation  could  be  had. 

M.  Canon-Legrand  dealt  especially  on  the  higher  prices 
of  machinery  as  quoted  by  the  United  States  and  Eng- 
land, which  he  regretted  very  much  had  necessitated  pur- 
chasing from  Germany  at  much  lower  prices.  He  stated, 
that  the  Germans  were  soliciting  their  business  every 
day.  He  said  that  the  Germans,  having  made  a  complete 
chart  of  all  plants  in  Belgium,  had  a  thorough  knowledge 
of  what  machines  were  there,  and,  in  the  course  of  the 
war,  used  them  as  required,  and  this  information,  of 
course,  is  now  of  considerable  value  to  them.  As  above, 
however,  the  prices  in  England  and  the  United  States, 
were  two  or  three  times  higher.  The  Germans  are  de- 
livering the  above  tools  new,  and  at  the  same  price  as 
quoted  before  the  war.  Exchange  which,  together  with 


THE  INTERNATIONAL  TRADE  CONFERENCE        413 

excessive  freight  rates,  makes  the  prospect  of  business 
with  us,  as  much  as  he  regrets  it,  exceedingly  doubtful. 

M.  Canon-Legrand  expressed  the  gratitude  of  Belgium 
for  what  has  been  done  by  the  United  States,  especially 
in  connection  with  the  food  supplies  we  had  afforded  them 
during  the  four  years  of  the  war. 

Mr.  Fletcher,  of  the  American  Locomotive  Works,  ex- 
plained to  M.  Neve,  who  had  remarked  that  locomotives 
and  railway  equipment  were  badly  needed,  his  recent  pro- 
posal to  Belgian  Government,  for  400  locomotives.  This 
contract,  Mr.  Fletcher  stated,  would  probably  be  com- 
pleted in  the  immediate  future.  He  also  advised,  that  he 
and  other  American  manufacturers  were  in  a  position  to 
supply  such  locomotives  as  were  required  on  very  short 
delivery.  It  was  stated,  that  recent  advice  tended  to 
prove  that  the  Belgian  Government  would  pay  cash, 
which  would  indicate  that  arrangements  from  other 
sources  had  been  completed. 

M.  Canon-Legrand  stated  that  the  French  locomotives 
they  had  secured,  were  both  passenger  and  freight.  There 
is  a  greater  demand  for  freight  locomotives  than  the 
passenger  type. 

Timber,  wood,  lumber  and  similar  material,  under  this 
heading,  were  badly  needed.  Their  supply  previously  and 
at  present  has  been  coming  from  Sweden. 

Mr.  Burton  of  J.  H.  Burton  &  Company,  New  York, 
afforded  information  relative  to  railroad  ties  as  needed 
by  Belgium.  These  pine  ties  cost  $2.00  each  in  America, 
and  with  a  freight  rate  of  approximately  $2.00  per  tie, 
made  the  price  25%  higher  than  a  first  class  oak  tie  could 
be  had  in  Belgium.  These  oak  ties  are  secured  from  the 
Belgian  and  French  Ardennes. 

Belting  is  not  required  at  present.  This  industry  has 
been  rapidly  renewed,  and  they  now  have  a  sufficiency. 
However,  leather  in  general  is  required. 

In  answer  to  a  direct  question  as  to  what  were  the 
essential  needs  at  present,  M.  Canon-Legrand  advised 
that  coking  coal,  oil  and  locomotives  were  primary. 

Glass  factories  are  getting  under  way,  and  they  are, 
in  fact,  in  position  to  export  certain  products  under  this 
heading. 

Prior  to  the  war,  Belgium  had  some  twenty-five  hun- 
dred coke  ovens  in  actual  operation.  At  present,  less  than 
seven  hundred  are  operating. 

The  railway  locomotives  secured  from  Germany  were 
not  in  good  condition.  They  also  received  a  great  many 


414        THE  INTERNATIONAL  TRADE  CONFERENCE 

railroad  cars  from  Germany,  so  that  their  equipment,  in 
that  respect,  is  not  short.  In  their  own  manufacturing 
they  have  always  produced  more  cars  than  locomotives. 

M.  Canon-Legrand  is  a  manufacturer  of  steel  and  wood 
cars. 

Steel  cables  for  mines  and  similar  purposes  are  re- 
quired. Belgium  secured  twenty-nine  thousand  (29,000) 
kilometers  of  salvaged  wire  from  England,  which  had 
been  captured  from  the  Germans.  This  wire  was  sup- 
posed to  have  been  copper.  As  a  matter  of  fact,  it  was 
a  substitute;  it  was  steel  wire  coated  with  copper. 

The  Belgian  railroads  are  all  owned  by  the  Government. 

Paper  cutters  and  some  printing  machinery  are  needed, 
according  to  Mr.  Neve.  Copper  fire  boxes  for  locomotives 
and  copper  for  other  purposes  are  required.  At  this 
point,  it  was  suggested  to  Mr.  Fletcher,  that  the  locomo- 
tives he  is  supplying  be  equipped  with  some  of  these 
boxes  as  spare  parts. 

Asbestos  products  are  not  particularly  needed.  They 
are  using  a  substitute  for  asbestos,  which  seems  to  afford 
satisfaction  at  probably  less  cost. 

Concrete  mixers  are  required  in  connection  with  re- 
construction work. 

At  this  point,  Mr.  Stewart,  Vice-President  of  the  Har- 
bison Walker  Refractories  Co.,  asked  if  any  arrangement 
had  been  made  in  Belgium  for  the  receipt  of  such  infor- 
mation as  this  convention  might  develop  along  the  line 
of  "Sources  of  Supplies."  It  was  stated,  that  the  present 
Committee  on  Permanent  Organization,  is  effecting  a  plan 
to  handle  this  subject. 

M.  Canon-Legrand  asked  Mr.  Fletcher,  of  the  Ameri- 
can Locomotive  Works,  for  books  of  instruction  on  the 
construction  of  locomotives,  etc.  Mr.  Fletcher  has  ar- 
ranged to  supply  these.  Requests  were  also  made  for  data 
on  the  subject  of  progress  in  aviation.  It  was  suggested, 
that  the  War  Department  be  put  in  touch  with  this  in- 
quiry, and  that  what  information  can  be  had  be  supplied 
to  Mr.  Canon-Legrand,  whose  card  is  attached  herewith. 

M.  Neve  advised  that  great  quantities  of  castings  for 
rolling  mill  machinery  were  used,  and  that  previously 
much  of  it  may  be  shipped  as  ballast,  and  that  perhaps 
connections  of  this  character  might  be  made  here.  A 
member  of  the  Committee,  suggested  the  United  En- 
gineering &  Foundry  Company,  of  Pittsburgh,  as  a  source 
of  information  relative  to  the  subject. 

In  answer  to  inquiries,  M.  Canon-Legrand  advised  that 


THE  INTERNATIONAL  TRADE  CONFERENCE        415 

labor  usually  worked  eight  hours,  and  that  very  little 
overtime  was  ever  employed.  He  stated,  that  there  had 
been  no  lack  in  efficiency  since  the  war,  but  that  the  labor 
question  was  largely  dictated  by  the  syndicate,  which 
compares  with  our  American  Federation  of  Labor  here. 
A  fifty-hour  week  prevails.  Wages  have  been  increased 
four  times  as  much  as  before  the  war,  and  that  prior  to 
the  war  a  ten-hour  day  was  the  rule. 

M.  Canon-Legrand  stated  that  five  years  ago  the  Bel- 
gian State  Railway  employes  were  equally  as  efficient  at 
three  (3)  francs  per  day,  as  they  are  now  at  twelve  (12) 
francs.  M.  Canon-Legrand's  employees  in  his  several 
plants  five  years  ago,  were  receiving  forty  (40)  centimes 
per  hour;  today,  they  are  receiving  fl.30  per  hour. 

M.  Neve  advised  that  Belgium  is  interested  in  labor- 
saving  machinery,  particularly  now  that  the  old  tendency 
to  use  men  for  ordinary  purposes — for  instance,  wheel- 
ing ashes  from  ash  pits  and  other  forms  of  common  labor, 
at  a  low  wage — is  out  of  the  question.  The  low  price 
man,  in  other  words,  cannot  be  found. 

There  is  some  piece-work,  but  the  syndicate  endeavors 
to  direct  that  pay  also  be  governed  on  the  basis  of  the 
age  of  the  employee. 


REPORT  OF  COMMITTEE. 

The  Committee  has  tried  to  stay  on  its  own  side  of 
the  road,  and  to  avoid  intrusion  upon  the  prerogatives 
of  other  committees  assigned  to  the  treatment  of  other 
subjects;  but  we  have  not  found  it  altogether  easy  to 
carry  out  that  good  intention.  The  subject  of  recon- 
struction supplies  is  such  an  exceedingly  broad  one,  and 
is  so  intimately  related  to  other  subjects  not  included  in 
our  function  that  with  the  best  of  intentions  on  our  part, 
we  frequently  found  ourselves  wandering  considerably 
from  our  assignment,  and  talking  about  shipping  or  steel 
or  oil,  or  finance  and  credit,  perhaps  particularly  finance 
and  credit,  but,  however,  we  believe  with  great  benefit 
to  our  own  purposes  and,  we  hope,  without  danger  to  the 
purposes  of  the  several  committees  whose  duty  it  was 
to  handle  these  subjects. 

The  spirit  of  our  sessions  has  been  splendid.  At  no 
time,  and  at  no  point  in  our  discussions  has  there  ap- 
peared anything  which  might  suggest  the  idea  of  a  con- 
test. We  got  together  in  a  spirit  which,  indeed,  if  I 
might  depart  just  a  little  bit  from  my  report  and  gener- 


416        THE  INTERNATIONAL  TRADE  CONFERENCE 

alize,  seems  to  express  a  great  deal  of  the  best  part  of 
the  spirit  that  was  developed  during  the  war,  that  spirit 
that  in  war-time  brought  the  military  leaders  of  the  dif- 
ferent nations  together  in  perfect  unity  for  the  purpose 
of  developing  campaigns  of  war  in  a  common  cause,  and 
which  now  brings  other  and  equally  great  leaders  of  these 
nations  together  again  in  a  spirit  of  perfect  unity,  and 
again  to  prepare  a  campaign  in  the  interest  of  a  com- 
mon cause,  not  so  war-like  as  the  other,  but,  1  am  quite 
sure,  not  less  serious. 

Our  methods  of  operation  were  simple  and  rather 
direct.  In  a  very  friendly  sense  of  the  term,  we  were 
largely  from  the  great  state  of  Missouri,  and  I  am  glad 
to  say  that  our  guests  seemed  to  get  the  idea,  and 
"showed  us."  Their  equipment  of  facts  and  figures  was 
splendid,  and  they  not  only  seemed  to  know  what  we 
were  driving  at,  and  what  we  wished  to  get,  but  they 
seemed  to  be  able  to  meet  us  all,  even  the  most  technical 
of  our  members,  quite  upon  our  own  ground,  and  then 
some. 

A  more  detailed  report  upon  the  development  of  our 
committee  has  been  filed  with  the  headquarters  of  the 
Chamber  and  will,  in  time,  I  assume,  be  ready  for  more 
general  distribution.  In  our  operations,  we  tried  to  find 
out  these  things,  first,  what  are  the  reconstruction  sup- 
ply needs  of  these  countries,  what  portion  of  these  needs 
or  what  things  required  did  they  expect  us  to  provide, 
and  in  what  quantities,  and  at  what  rate  of  deliveries. 
Then,  we  reversed  the  operation  and  tried  to  find  out  what 
they  were  able  to  produce  within  a  reasonable  time  which 
they  could  sell  to  us,  with  a  natural  desirable  effect  upon 
the  exchange  difficulty,  of  which  everybody  seems  to  be 
so  keenly  conscious,  and  which  has  been  referred  to  con- 
stantly in  the  deliberations  of  our  committee.  Then, 
naturally,  we  discussed  with  them  their  most  urgent  re- 
construction problems  and  tried  to  find  out  what  it  was 
that  we  could  do  in  the  way  of  providing  advice  or 
assistance  or  expert  aid,  which  might  simplify  the  solu- 
tion of  these  problems,  and  in  this  particular  I  am  glad 
to  be  able  to  report  that  very  substantial  progress  seems 
to  have  been  made. 

Takng  up  the  countries  in  the  order  in  which  we  met 
these  committees,  and  confining  the  report  to  the  more 
important  needs  which  were  expressed,  we  found  about 
as  follows: 


THE  INTERNATIONAL  TRADE  CONFERENCE        417 
BELGIUM. 

Belgium  needs  from  us,  and  principally,  first  of  all, 
money;  then  cars,  tools,  heavy  machinery,  coal,  coke,  oil, 
mining  machinery,  railroad  engines  and  lumber,  and  a 
number  of  other  things,  of  course,  but  these  are  the  out- 
standing needs  which  came  to  us  as  the  result  of  our  total 
deliberations  with  them.  Another  point  which  impressed 
us  very  much,  and  which  seemed  to  impress  them  very 
much  was  this.  They  state  that  because  of  the  unfavor- 
able condition  of  exchange  as  between  them  and  us,  and 
because  of  our  comparatively  high  prices,  and  because, 
also  of  the  slowness  with  which  our  deliveries  can  be  made 
they  find  that  in  all  probability  they  will  be  obliged  to 
buy  in  Germany  a  great  many  goods  which  they  would 
much  prefer  to  buy  from  us.  They  told  us  and  have  con- 
vinced us  conclusively,  that  the  work  of  reconstruction 
in  Belgium  is  going  on  rapidly,  and  that  even  now  very 
substantial  progress  has  been  made.  Two  railroad  maps 
in  particular,  which  they  showed  us,  were  most  im- 
pressive, one  indicating  the  condition  of  destruction  as 
referred  to  railroads  existing  in  Belgium  at  the  time  of 
the  signing  of  the  armistice.  The  destroyed  railroads 
were  marked  in  red,  and  it  was  a  pretty  red  map.  The 
second,  indicated  the  present  condition,  and  it  looked  to 
use  like  nothing  but  a  steady  diet  of  miracles  operating 
since  the  signing  of  the  armistice,  and  now  could  have 
eliminated  so  much  of  the  red  from  that  particular  map. 
They  told  us  that  the  labor  conditions  in  Belgium,  while 
not  entirely  satisfactory,  are  improving  at  a  very  grat- 
ifying rate,  that  the  laborers  had  gone  back  to  their 
work,  or  are  going  back  in  a  very  gratifying  number.  Of 
course,  they  have  labor  troubles,  as  we  have.  Over  there, 
they  call  it  labor  syndicates.  Here,  we  call  it  by  another 
name,  but  it  amounts  to  the  same  thing.  They  told  us 
that  their  day  of  labor,  because  of  the  pressure  applied 
by  these  syndicates  has  been  reduced  to  eight  hours,  but 
they  told  us  also,  which  impressed  us  as  very  important, 
that  the  unit  efficiency  of  labor  is  quite  up  to  the  pre- 
war standard. 

ITALY. 

Italy's  reconstruction  problem  is  principally,  and  nat- 
urally, an  agricultural  one.  This  is  due  to  the  fact  that 
something  like  90  per  cent,  of  the  population  is  engaged 


418        THE  INTERNATIONAL  TRADE  CONFERENCE 

in  agriculture.  They  need  agricultural  machinery  in  con- 
siderable quantities,  also  machinery  for  draining  and 
trench  or  ditch  digging,  which  will  enable  them  to  operate 
with  speed  and  efficiency.  On  this  point,  we  were  able, 
we  believe,  to  give  them  some  valuable  suggestions  and 
to  direct  them  to  a  number  of  concerns  in  this  country 
which  have  made  extraordinary  progress  in  the  develop- 
ment of  machinery  of  this  kind. 

Italy  also  needs  assistance  on  a  rather  extensive  scale 
in  rebuilding  of  their  fisheries  industry,  great  numbers 
of  their  fishing  boats  haying  been  destroyed,  which  has 
been  the  fate  also  of  fishing  tackle,  nets,  etc.  The  prob- 
lem of  housing  their  population  was  described  as  very 
great,  and  they  stress  the  importance  of  the  employment 
of  American  expedients,  and  incidentally,  assistance  from 
us  in  the  use  of  machinery  which  can  be  utilized  in  quick 
the  erection  of  standard  houses.  They  referred  particular- 
ly to  the  employment  of  what  I  believe  we  know  as  a 
cement  cone.  It  is  a  little  bit  vague  in  my  mind  just  what 
that  is,  but  they  seem  to  know  all  about,  and  here  again 
we  were  able  to  direct  them  to  original  sources  of  infor- 
mation upon  these  matters. 

They  need  also  oil,  coal  and  a  wide  variety  of  lines  of 
supplies,  and  the  United  States  should  be  able  to  play  an 
important  part.  They  referred  also  to  their  needs  in  the 
matter  of  improvement  of  harbors. 

In  general,  their  needs  for  our  goods  are  very  consid- 
erable,, and  not  the  least  of  them  is  their  need  of  money. 

ENGLAND. 

When  we  came  to  England  we  found  that  in  the  matter 
of  reconstruction  supplies  they  have  no  problem  which 
they  are  not  quite  able  to  solve  for  themselves.  They 
stated  very  frankly  that  they  came  requesting  no  assist- 
ance, but  they  certainly  came  in  a  thorough  spirit  of 
helpfulness. 

Their  discussions  with  us  upon  labor  conditions  in 
England  and  more  generally  upon  those  existing  on  the 
European  Continent  were  most  illuminating.  They  left 
us  with  a  rather  definite  expression  to  the  effect  that 
while  the  labor  situation  in  Europe  generally  is  quite 
serious,  it  can  be  handled;  the  problem  can  be  solved. 
They  have  radicals  there,  as  we  have  here,  but,  as  one  of 
the  members  of  the  British  Committee  stated,  it  is  almost 
beyond  doubt,  and  they  referred  particularly  to  England 


THE  INTERNATIONAL  TRADE  CONFERENCE        419 

and  also  included  some  of  the  continental  countries,  that 
these  radical  tendencies  will  in  time  yield  to  the  recog- 
nized power  of  law  and  order.  I  am  quoting  directly 
from  what  they  told  me. 

Reference  was  also  made,  and  quite  naturally  made  by 
them,  to  the  general  problem  of  financing  the  require- 
ments of  the  more  seriously  war  injured  of  the  European 
countries,  and  also  to  the  exceedingly  important  part 
which  the  United  States  also  naturally  must  play  in  the 
solution  of  this  problem.  They  called  our  attention  to 
the  fact  that  up  to  the  time  we  entered  the  war  they  had 
borne  the  financial  burden  and  that  now  their  greatest 
interest  naturally  concerned  putting  themselves  in  such 
a  condition  as  to  be  able  to  meet  their  own  obligations 
rather  than,  without  very  good  cause,  adding  to  that  list 
of  obligations. 

FRANCE. 

The  French  Committee  on  Reconstruction  Supplies  sub- 
mitted a  particularly  complete  report  upon  their  situa- 
tion, which  report  is  in  the  possession  of  the  Chamber 
and  I  am  sure  that  you  will  find  it  interesting  and  of 
great  assistance  in  this  general  reconstruction  problem. 
This  report  presented  an  interesting  and  surprising  state- 
ment of  the  reconstruction  work  which  already  has  taken 
place  in  France,  and  tended  to  show  that  unemployment 
is  diminishing  rapidly,  that  agricultural  reconstruction 
has  progressed  substantially  and  that  the  people  of  the 
country  are  going  back  to  work  in  a  gratifying  manner, 
that  transportation  facilities,  such  as  the  railroads  and 
canals,  destroyed  during  the  war  are  rapidly  approach- 
ing their  pre-war  condition;  that  immense  new  public 
works,  transportation,  drainage,  harbors,  etc.,  are  being 
projected  and,  in  general,  the  French  situation  as  re- 
gards industry  and  commerce  is  far  and  away  in  advance 
of  what  is  rather  generally  believed  in  this  country  to  be 
the  case,  and  they  had  facts  and  figures  and  statistics  and 
that  sort  of  thing  upon  which  to  base  their  statements. 

The  French  particularly  emphasized  the  importance  of 
their  proceeding  along  reconstruction  lines  which  will 
recognize  sound  economic  principles.  They,  among  other 
things,  and  quite  naturally,,  propose  to  buy  where  the 
conditions  for  buying  are  most  favorable,  and  to  sell 
where  they  can  do  so  with  the  greatest  benefit  to  France. 
Their  discussion  upon  these  points  was  most  interesting, 


420        THE  INTERNATIONAL  TRADE  CONFERENCE 

and  they  treat  this  subject  in  more  full  detail  in  the  more 
complete  report  in  the  possession  of  the  Chamber.  They 
indicated  an  astonishing — I  do  not  know  whether  it 
should  be  astonishing,  but  we  have  heard  so  much  on  the 
other  side  that  it  did  surprise  us  a  little — they  had  at 
least  a  surprising  disposition  to  solve  their  own  problems. 
They  spoke  of  the  immense  supplies  of  wheat  and  other 
commodities  to  be  found  in  the  French  Colonies  and 
which  could  be  transported  to  France  in  ships,  and  they 
seemed  to  have  made  a  most  thorough  study  of  the  situa- 
tion, and  to  have  some  very  well  worked  out  theories  as 
to  the  extent  which  they  can  afford  under  existing  con- 
ditions of  exchange,  high  prices,  etc.,  to  purchase  their 
goods  from  us. 

They  need,  as  do  Belgium  and  Italy,  money,  lumber, 
machinery,  automatic  car  couplers  and  railroad  signal 
systems  and  other  improvements  in  their  transportation 
situation  and  other  lines  rather  distinctly  American, 
which  may  be  used  in  more  completely  modernizing  their 
transportatnon  situation;  but  at  every  point  they  im- 
pressed upon  us  the  extreme  difficulty  they  would  en- 
counter in  buying  these  things  from  us. 

We  are  sorry  that  we  did  not  have  more  time  to  confer 
with  these  gentlemen.  We  feel  we  made  progress.  We 
found  our  meetings  were  delightful  and  we  hope  the 
work  that  was  started  in  our  committee  will  continue  in 
the  future. 

E.  W.  RICE,  Chairman. 


COMMITTEES  ON  SHIPPING. 
BELGIUM. 

M.  DE  GROOTE. 

M.  CANON-LEGRAND. 

M.  NEVE. 


FRANCE. 


M.  DE  PELLERIN  DE  LA  TOUCHE. 

M.  PARMENTIER. 

M.  BARON  DU  MARAIS. 

M.  ANDRE  HOMBERG. 

M.  LOIZEAU. 

M.  MAURICE  BOYER. 

M.  POTIN. 


THE  INTERNATIONAL  TRADE  CONFERENCE        421 
GREAT  BRITAIN. 

SIR  ARTHUR  SHIRLEY  BENN. 
SIR  JAMES  HOPE  SIMPSON. 
MR.  MARSHALL  STEVENS. 
HON.  J.  G.  JENKINS. 
BAILIE  JOHN  KING. 
MR.  FRANK  MOORE. 


ITALY. 


B.  ATTOLICO. 

L.  LUIGGI. 

P.  G.  LAZZERINI. 

F.  QUATTRONE. 

A.  PALANCA. 
L.  SOLARI. 
SIG.  PFISTER. 
SIG.  DI  GIORGIO. 
A.  T.  BARBERINI. 


AMERICA, 


P.  A.  S.  FRANKLIN,  Chairman; 
President,  Mercantile  Marine  Co.,  New  York  City 
N.  SUMNER  MYRICK,  Vice-Chairman  and  Secretary. 

Mills  Building,  Washington,  D.  C. 

C.  W.  STOWELL,  Assistant  Secretary, 

Chamber  of  Commerce  of  the  United  States,  Woolworth  Building. 

New  York  City. 
ACKERSON,  J.  L.,  Vice-President.  United  States  Emergency  Fleet 

Corporation,  Philadelphia,  Pa. 

BURLING,  EDWARD  B.,  Union  Trust  Bldg.,  Washington,  D    C. 
CHUBB,  HENDON,  Chubb  &  Son,  New  York  City. 
DAY,  CHARLES  A.,  Day  &  Zimmerman,  Philadelphia,  Pa. 
DEARBORN,  G.   S.,  President,  American  Hawaiian   Steamship   Co., 

New  York  City. 
GORDON,  JOHN  R.,  Traffic  Manager,  Union  Sulphur  Co.,  New  York 

City. 

GRACE,  JOSEPH  P.,  President,  W.  R.  Grace  &  Co.,  New  York  City. 
HULL,  A.  H.,  President,  Hull  Steamship  Co.,  New  York  City. 
KIRLIN,  J.  PARKER,  New  York  City. 

OGDEN,  GEORGE  D.,  Freight  Traffic  Manager,  Pennsylvania  Rail- 
road Co.,  Philadelphia,  Pa. 

PALEN,   E.   E.,   Assistant  Director   of  Operations,   United   States 
Shipping  Board,  Norfolk,  Va. 


422        THE  INTERNATIONAL  TRADE  CONFERENCE 

POWELL,  J.  W.,  Vice-President,  Bethlehem  Shipbuilding  Corpora- 
tion, South  Bethlehem,  Pa. 

RAYMOND,  H.  H.,  President,  Clyde  Steamship  Company,  New  York 
City;  President,  American  Steamship  Association. 

TAYLOR,  H.  BIRCHARD,  Vice-President,  William  Cramp  &  Sons 
Ship  and  Engine  Building  Company,  Philadelphia,  Pa. 

AMERICAN. 

The  first  meeting  of  the  Committee  on  Shipping  was 
called  to  order  by  Chairman  P.  A.  S.  Franklin  at  8.30 
o'clock  Sunday  evening,  October  19,  in  the  Submarine 
Grill. 

The  following  members  of  the  Committee  were  present : 

P.  A.  S.  FRANKLIN,  Chairman. 

EDWARD  B.  BURLING. 

CHAS.  A.  DAY. 

G.  S.  DEARBORN. 

JOSEPH  P.  GRACE. 

J.  PARKER  KIR^N. 

GEO.  D.  OGDEN. 

E.  E.  PALEN. 

J.  W.  POWELL. 

H.  H.  RAYMOND. 

H.  BIRCHARD  TAYLOR. 

N.  SUMNER  MYRICK,  Vice-Chairman  and  Secretary. 

C.  A.  STOWELL,  Assistant  Secretary. 

Mr.  H.  Y.  Saint  of  the  Coal  Bureau  of  the  Shipping 
Board,  Mr.  J.  D.  A.  Morrow  Vice-Chairman  of  the  Coal 
Committee  of  the  Conference,  and  Mr.  H.  Lane  of  the 
Information  Bureau  of  the  United  States  Shipping  Board, 
were  also  present. 

This  meeting  was  attended,  of  course,,  by  no  represen- 
tatives of  the  foreign  missions,  and  was  intended  for  the 
discussion  of  the  methods  by  which  the  conferences  with 
the  foreign  delegations  should  be  taken  up,  and  general 
talk  concerning  the  needs  of  each,  and  particularly  those 
of  Italy,  because  the  first  scheduled  meeting  with  a  for- 
eign delegation  was  with  Italy  on  Monday  afternoon. 
.  Mr.  H.  Y.  Saint  of  the  U.  S.  Shipping  Board  was  pres- 
ent and  gave  particularly  valuable  information  on  the 
Italian  situation  with  reference  to  available  tonnage  of 


THE  INTERNATIONAL  TRADE  CONFERENCE        423 

American  ships,  inadequate  terminal  facilities  in  At- 
lantic ports,  and  the  impossibility  of  return  cargoes.  In- 
teresting information  was  also  given  by  Mr.  Gordon  of 
the  Union  Sulphur  Co.,  concerning  English  domination 
of  the  Italian  coal  trade,  the  handicap  of  American  coal 
exporters  before  the  war  because  of  the  shorter  haul 
from  England,  and  the  added  advantage  of  the  English 
in  securing  return  cargoes  of  Spanish  iron  ore. 

In  the  general  discussion  that  followed  it  was  brought 
out  that  the  Mediterranean  coal  trade  in  the  future  might 
be  considered  as  a  debatable  proposition,  but  a  number  of 
the  committee  present  believed  America  had  a  fighting 
chance.  This  lead  to  a  discussion  of  the  present  coal  pools 
and  the  evils  existing  under  this  system  and  to  a  discus- 
sion of  the  larger  independent  operators  and  exporters  of 
coal  who  practically  maintained  their  own  pools.  Because 
of  the  importance  of  this  later  discussion,,  Mr.  J.  D.  A. 
Morrow,  Vice-Chairman  of  the  Committee  on  Coal  was 
called  into  conference  and  made  a  very  valuable  contri- 
bution. 

The  meeting  adjourned  at  10.30. 


ITALIAN. 

The  second  scheduled  meeting  of  the  Shipping  Com- 
mittee took  place  on  Monday  afternoon,  October  20,  at 
2.15,  in  the  Submarine  Grill.  The  following  were 
present : 

Representing  the  Italian  Shipping  Committee: 

PROF.  BERNARDO  ATTOLICO. 

DR.  LUIGI  LUIGGI. 

COM.  PIETRO  GIOVANNI  LAZZERINI. 

COM.  ENG.  FERDINANDO  QUARTIERI. 

MR.  A.  PALANCA. 

M.  L.  SOLARI. 

A.  C.  BONASCHI. 


424        THE  INTERNATIONAL  TRADE  CONFERENCE 

Italians  of  New  York  or  Italy  attending  the  Confer- 
ence by  invitation  of  the  Italian  Mission : 

MR.  G.  VITELLI. 

MR.  L.  J.   SCARAMELLI. 

MR.  G.  B.  CECCATO. 
MR.  V.  MENEGHELLI. 
MR.  O.  TUCCIMEI. 
MR.  C.  H.  HAUSS. 

The  following  members  of  the  Shipping  Committee  of 
the  Chamber  of  Commerce  of  the  United  States : 

MR.  P.  A.  S.  FRANKLIN,  Chairman. 

MR.  N.  SUMNER  MYRICK,  Vice-Chairman  and  Secretary. 

MR.  EDWARD  B.  BURLING. 

MR.  HENDON  CHUBB. 

MR.  CHAS.  A.  DAY. 

MR.  G.  S.  DEARBORN. 

MR.  JOHN  R.  GORDON. 

MR.  JOSEPH  P.  GRACE. 

MR.  EDWARD  N.  HURLEY. 

MR.  J.  PARKER  KIRLIN. 

MR.  GEO.  D.  OGDEN. 

MR.  E.  E.  PALEN. 

MR.  J.  W.  POWELL. 

MR.  H.  H.  RAYMOND. 

MR.  H.  BIRCHARD  TAYLOR. 

MR.  C.  A.  STOWELL,  Assistant  Secretary. 

MR.  W.  F.  GIBBS,  Secretary  to  Mr.  Franklin. 

And  the  following  men  of  the  Coal  Bureau  of  the  Ship- 
ping Board : 

MR.  H.  LAUE. 
MR.  H.  Y.  SAINT. 
MR.  W.  F.  TAYLOR. 

Representing  the  Trade  Commission  of  the  Depart- 
ment of  Commerce: 

MR.  JOSEPH  CHIESA. 

MR.  WESLEY  FROST,  of  the  Department  of  State. 

MR.  PAUL  CLAGSTONE,  of  the  Chamber  of  Commerce  of  the 

United    States,    and    representative    of    the    "Nation's 

Business." 


THE  INTERNATIONAL  TRADE  CONFERENCE        425 

Chairman  P.  A.  S.  Franklin  called  the  meeting  to  order 
and  the  members  of  the  Italian  Mission  promptly  began 
the  statement  of  their  needs. 

Professor  Luiggi  dwelt  briefly  on  the  state  of  the  Ital- 
ian shipping  before  and  during  the  war  and  following 
the  signing  of  the  Armistice.  He  made  an  interesting 
point  that  apparently  the  vessels  which  were  lost  through 
submarine  warfare  were  those  of  the  largest  cargo 
capacity  possessed  by  Italy,  and  that  at  the  close 
of  the  war  Italy  had  in  her  possession  a  great  majority 
of  small  cargo  carriers  which  could  not  be  operated  at  a 
profit  in  overseas  trade,  particularly  in  the  coal  trade.  It 
was  stated  that  the  Italians  possessed  abundance  of 
skilled  workmen  and  were  able  to  build  ships  of  the  very 
highest  type,  but  the  lack  of  coal  was  operating  seriously 
against  railroad  transportation,  fuel  with  which  to  run 
mills  and  blast  furnaces,  and  to  work  the  iron  mines.  In 
fact,  every  phase  of  industrial  life  is  crippled. 

In  seeking  the  solution  of  these  difficulties,  Professor 
Attolico  suggested  four  remedies: 

1.  The  possibility  of  buying  ships  in  America,  which 
depends  very  largely  on  price. 

2.  The  possibility   of  America   financing   plates   and 
other  material  for  the  shipyards  in  Italy. 

3.  The  possibility  of  combining  American  capital  with 
Italian  capital  to  institute  steamship  lines. 

4.  Reduction  of  freight  rates. 

It  was  developed  later  in  the  discussion  following  the 
departure  of  the  Italian  delegation  that  Italy's  tonnage 
is  about  2,500,000  gross  tons,,  including  home  chartered 
tonnage,  and  also  500,000  tons  to  be  obtained  by  release 
from  Great  Britain,  about  one-half  of  which  has  been 
delivered,  or  is  being  delivered.  It  is  expected  that  the 
total  delivery  by  Great  Britain  will  be  completed  by  the 
spring  of  1920.  It  must  be  borne  in  mind,  however,  that 
a  large  number  of  these  vessels  are  small  cargo  carriers 
and  are  not  adapted  to  profitable  trade  with  the  United 
States.  They  may,  however,  be  used  to  advantage  in 


426        THE  INTERNATIONAL  TRADE  CONFERENCE 

obtaining  grain  from  Southern  Russia  and  for  the  pos- 
sible development  of  coal  routes  via  the  Suez  Canal  when 
Italy's  credit  will  enable  her  to  purchase  from  India. 

It  was  further  brought  out  that  the  existing  Italian 
laws  could  give  little  encouragement  to  Amercian  in- 
vestment interests  in  the  matter  of  organizing  privately 
owned  steamship  lines  to  Italy.  Fifty-one  per  cent  of  the 
capital  stock  would  of  necessity  be  under  Italian  control, 
and  this,  of  course,  would  not  meet  with  favor  with 
American  capital. 

It  was  shown  that  prior  to  the  war  Italy's  coal  supply 
was  mostly  obtained  from  Great  Britain,  but  the  present 
conditions  in  England,  due  to  labor  troubles,  are  such  that 
England  cannot  supply  the  demand  and  Italy  must  turn 
to  the  United  States  for  coal.  The  Italians  made  it  per- 
fectly clear  in  this  respect  that  they  were  seeking  to 
establish  a  permanent  trade  in  coal,  mentioning  the  fact 
that  the  Pocahontas  coal  was  best  known  and  was  readily 
accepted.  In  the  case  of  the  railroads,  however,  certain 
types  of  grates  and  fire-boxes  were  not  adapted  for  any 
but  the  English  coal. 

In  previous  discussion  on  Sunday  night,  it  was  shown 
that  America  could  not  supply  but  a  fractional  part  of  the 
coal  Italy  needs,  due  to  shortage  in  shipping,  length  of 
turn  around  and  high  cost  of  freight.  It  has  been  the 
custom  of  the  Shipping  Board  to  send  back  most  of  their 
boats  in  ballast  because  of  the  absolute  inability  to  se- 
cure return  cargoes  and  the  delay  in  loading  a  boat  if 
cargo  were  obtainable  would  cost  more  in  dollars  and 
cents  than  the  profit  of  the  return  cargo. 

During  the  discussion  Italy  pointed  out  the  fact  that 
pier  and  terminal  facilities  had  been  largely  increased 
and  that  delays  were  less  during  the  last  three  months 
than  before,  and  that  it  was  now  possible  for  the  coun- 
try to  discharge  at  least  one  thousand  tons  a  day.  It  was 
suggested  by  Mr.  Gordon  that  if  increased  ability  in  dis- 
charging coal  cargoes  could  be  had  by  Italy,  that  there 
would  be  a  possibility  of  lowering  freight  rates.  Mr. 
Taylor  of  the  Shipping  Board,  in  rebuttal,,  stated  that  it 


THE  INTERNATIONAL  TRADE  CONFERENCE        427 

was  a  possibility  that  the  rates  had  already  been  lowered 
to  a  very  low  figure  possibly  in  a  somewhat  altruistic 
spirit. 

An  interesting  point  to  the  American  shippers  was 
cleared  up  by  H.  B.  Taylor  of  the  United  States  Shipping 
Board,  who  told  the  Italian  delegation  he  had  been  in- 
formed that  demurrage  could  not  be  protected  at  Italian 
ports  by  a  lien  on  the  cargo  of  ships  held  up  there.  This 
statement  brought  protest  from  the  Italians  who  stated 
they  were  anxious  to  correct  this  impression  in  the  minds 
of  the  American  shipper.  Mr.  Quattrone,  of  the  Italian 
Mission,  assured  the  American  Committee  that  Mr.  Tay- 
lor had  been  misinformed,  and  that  he  had  just  learned 
by  cable  that  demurrage  charges  could  be  protected  by 
lien  on  the  cargo.  Mr.  Franklin,  the  Chairman,  noted 
that  what  shipping  required  was  dispatch  and  not  de- 
murrage. 

Italy  complained  of  the  fact  that  the  rates  to  South 
America  from  the  Atlantic  Coast  were  very  much  cheaper 
than  those  to  Italy,  quoting  the  figures  of  $14  to  the 
Platte,  as  against  $25.50  to  Italy.  Professor  Attolico 
stated  that  he  realized  that  one  reason  why  the  freight 
rate  to  South  America  was  cheaper  was  doubtless  the 
great  interest  the  United  States  had  in  developing  trade 
with  South  America.  It  was  brought  out  in  the  evening 
discussion,  however,,  that  the  cargo  from  the  United 
States  was  one  consisting  of  half  coal  and  half  general 
merchandise  sent  to  the  River  Platte  or  some  part  of 
South  America,  and  that  the  rate  was  cheaper  on  account 
of  the  possibilities  of  return  cargo. 

It  is  the  opinion  of  the  Shipping  Committee  that  the 
Mediterranean  coal  trade  is  largely  a  debatable  proposi- 
tion. It  may  be  possible  to  develop  a  profitable  trade 
there,  provided  that  the  coal  pools  are  organized  to  the 
extent  of  providing  coal  of  higher  grade  and  uniform 
quality.  The  present  railroad  pools  with  an  indiscrimi- 
nate dumping  of  mixed  grades  are  rapidly  giving  Amer- 
ican coal  a  black  eye  in  the  American  market.  It  has 
been  shown,  as  well,  that  the  great  independent  operators 


428        THE  INTERNATIONAL  TRADE  CONFERENCE 

(Berwind- White,  Pocahontas  Fuel,  etc.)  have,  by  care- 
ful grading,  chemical  analysis  and  special  service  to  cus- 
tomers, developed  a  trade  that  is  absolutely  reliable  in 
Europe  and  have  made  themselves  a  name  for  their 
product. 

An  interesting  feature  of  the  afternoon  discussion  was 
the  disclosure  that  before  the  war  Italy  had  begun  to 
make  a  steady  purchase  of  American  coal  and  had  ac- 
cumulated a  reserve.  When  the  supply  from  England 
was  cut  off,  it  was  this  accumulation  of  American  coal 
that  enabled  Italy  to  carry  on  and  to  keep  her  factories 
running  during  a  certain  period  of  the  war,  at  least. 

The  meeting  adjourned  at  4.35,  with  the  understand- 
ing that  no  decision  would  be  made  by  the  Committee 
until  after  the  close  of  the  Conference.  It  was  voted  that 
the  appointment  of  sub-committee  on  coal  for  Italy  be 
left  to  the  discretion  of  the  Chairman,  Mr.  P.  A.  S. 
Franklin. 

Joint  Meeting. 

In  order  to  make  the  most  of  the  time  of  Mr.  H.  B. 
Taylor,  of  the  United  States  Shipping  Board,,  it  was  de- 
cided to  hold  an  informal  dinner  on  Monday  evening,  Oc- 
tober 20,  at  6  o'clock,  at  which  time  at  least  two  repre- 
sentatives from  each  of  the  four  visiting  delegations 
could  question  Mr.  Taylor  and  draw  from  him  certain 
information  not  so  readily  available  in  a  more  formal 
session.  There  were  present  from  the  Shipping  Com- 
mittee Messrs.  Franklin,  Myrick,  Raymond,  Dearborn, 
and  Stowell;  from  the  British  Commission,  Sir  Arthur 
Shirley  Benn,  and  Mr.  Marshall  Stevens;  from  the  Ital- 
ian Commission,  Professor  Attolico,  and  Messrs.  L. 
Luiggi  and  P.  G.  Lazzerini;  from  the  Belgian  Commis- 
sion, M.  de  Groote  and  M.  Albert  Neve ;  from  the  French 
Commission  M.  Pellerin  de  Latouche,  M.  Freminville,  M. 
Parmentier,,  and  M.  Harinkouck. 

Following  the  dinner  a  very  informal  and  extremely 
interesting  discussion  took  place,  centered  about  Mr. 


THE  INTERNATIONAL  TRADE  CONFERENCE        429 

Taylor,  who  was  able  to  give  a  great  deal  of  wanted  in- 
formation on  the  subject  of  available  tonnage,  freight 
rates,  the  triangular  route,  and  the  general  policies  of  the 
Shipping  Board.  This  meeting  adjourned  at  8.15  to  per- 
mit the  members  of  the  foreign  delegations  to  attend 
other  evening  sessions. 

BELGIUM. 

The  Committee  from  the  Belgian  delegation  met  with 
the  Shipping  Committee  at  10  A.  M.  on  Tuesday,  October 
21.  in  the  Submarine  Grill.  There  were  present  the  full 
membership  of  the  Committee  in  Atlantic  City  at  the 
present  time  (Messrs.  Ackerson  and  Bull  being  absent)  ; 
Honorary  Vice-President  A.  B.  Farquhar,  Mr.  Taylor  of 
the  Shipping  Board,  Mr.  Frost  of  the  State  Department, 
Mr.  Paul  Clagstone  of  "The  Nation's  Business,"  Messrs. 
L.  S.  Gillette  and  M.  J.  Sanders,  Directors  of  the  Cham- 
ber of  Commerce,  and  the  following  members  of  the  Bel- 
gian Mission:  M.  de  Groote,  M.  Canon-LeGrand,  and 
M.  Neve. 

The  requests  of  the  Belgians  were  very  brief  and  per- 
tained mostly  to  the  matter  of  lower  rates  on  foodstuffs. 
Belgium  does  not  lack  coal,  with  the  possible  exception 
of  gas  and  cooking  coals,  formerly  obtained  from  north- 
ern France  and  from  Germany.  Coal  production  in  Bel- 
gium at  the  present  time  is  about  86  per  cent  of  the  pre- 
war figure,  and  Belgium  is  even  now  selling  coal  to 
Holland,  Italy  and  France,  the  last  named  in  small  quan- 
tities. 

M.  DeGroote  was  the  principal  speaker  and  showed 
plainly  the  fact  that  from  the  standpoint  of  Belgium  the 
reduction  of  freight  rates  would  have  to  be  absolutely 
necessary  if  wheat  is  to  be  obtained  in  sufficient  quan- 
tities to  make  bread  at  a  fair  price.  The  wheat  supply 
formerly  available  from  Russia,  is  not  obtainable  at  this 
time.  Furthermore,  should  conditions  better  in  that  coun- 
try, it  would  not  be  possible  to  move  any  great  amount 
of  wheat  until  the  middle  of  April,  1920,  due  to  the  freez- 
ing of  waterway  communications. 


430        THE  INTERNATIONAL  TRADE  CONFERENCE 

The  Belgian  tonnage  is  not  under  any  Government 
control.  It  appears,  however,  that  it  operates  under 
agreement  with  the  Government,  by  which  commodities 
are  brought  to  Belgium  at  a  lower  price  than  the  open 
freight  rates.  The  Belgian  ships  are  free  to  operate  in 
any  part  of  the  world  whatever,,  but  they  are  practically 
all  engaged  in  bringing  commodities  of  the  greatest  need 
to  Belgium.  Italy's  coal  is  practically  all  moved  out  of 
Belgium  by  Italian  ships,  and  one  line  running  to  Austra- 
lia bunkers  in  Antwerp,  and  takes,  as  well,  a  general 
cargo. 

Inquiry  made  concerning  the  potash  trade  of  Alsace- 
Lorraine  as  to  the  advisability  of  moving  it  through  Ant- 
werp, rather  than  Rotterdam,  developed  the  fact  that 
in  the  opinion  of  the  Belgian  delegation,  it  would  not  be 
possible  to  obtain  Government  pressure  to  this  end.  This 
must  be  accomplished  through  the  enterprises  of  private 
firms.  The  vast  amount  of  kanit  formerly  routed  through 
Germany  and  the  Dutch  ports  could  well  be  transported 
through  Antwerp,  and  the  suggestion  was  made  by  Mr. 
Taylor  of  the  United  States  Shipping  Board,  that  the 
possibility  of  obtaining  a  return  cargo  of  potash,  greatly 
in  demand  in  the  United  States,  might  operate  to  reduce 
shipping  rates  on  eastern  cargoes  from  the  United  States 
of  foodstuffs  and  commodities  greatly  in  demand  in 
Belgium,  on  which  the  Belgians  believe  the  freight  rates 
are  at  present  excessive. 

The  Belgians  particularly  emphasized  their  belief  in 
the  necessity  of  a  free  market  and  unrestricted  shipping 
for  the  entire  world,  believing  that  the  steady  increase  in 
tonnage,,  plus  the  competitive  factor,  would  tend  to  re- 
duce freight  rates  to  a  normal  level  and  thereby  relieve 
their  greatest  need — that  is,  of  obtaining  sufficient  food. 

The  meeting  adjourned  at  12  o'clock. 

GREAT  BRITAIN. 

The  committee  from  the  British  delegation  met  with 
the  Shipping  Committee  at  2.15  o'clock  on  Tuesday  after- 


THE  INTERNATIONAL  TRADE  CONFERENCE        431 

noon,  October  21,  in  the  Submarine  Grill.  There  were 
present  the  full  membership  of  the  Committee  in  Atlantic 
City  at  the  present  time  (Messrs.  Ackerson  and  Bull 
being  absent)  ;  Honorary  Vice-President  A.  B.  Farquhar, 
Mr.  Taylor  of  the  Shipping  Board,  Mr.  Frost  of  the  State 
Department,  Mr.  Chiesa  of  the  Department  of  Commerce, 
Mr.  Paul  Clagstone  of  'The  Nation's  Business,"  and  the 
following  members  of  the  British  Commission :  Sir 
Arthur  Shirley  Benn,  Sir  James  Hope  Simpson,  Mr.  Mar- 
shall Stevens,  Mr.  J.  J.  Brokerick,  Civil  Attache,  British 
Embassy,  and  Mr.  George  Berkes,  Secretary. 

Sir  Arthur  Shirley  Benn  in  presenting  the  case  of  the 
British  delegation  stated  that  Britain  had  not  come  to  ask 
for  anything,  but  strongly  advocated  heartiest  coopera- 
tion between  American  and  British  mercantile  interests, 
strongly  favored  the  elimination  of  Government  control 
at  the  earliest  possible  moment  in  order  to  bring  freight 
rates  to  normal  levels. 

During  the  war  the  English  mercantile  marine  suf- 
fered heavily — far  more  than  that  of  any  other  nation. 
Continuous  effort  had  been  maintained  in  shipbuilding, 
and  as  was  later  brought  out  by  Bailie  John  King,  Eng- 
land, which  heretofore  purchased  to  a  certain  extent  cast- 
ings and  other  construction  parts  of  ships  from  Germany 
and  Austria,,  had  been  able  to  produce  everything  she 
needed  in  her  own  yards  in  sufficient  quantities,  not  only 
for  war  needs,  but  for  years  to  come.  The  sentiment 
was  plainly  expressed  that  should  the  need  arise  in  Eng- 
land for  any  material  or  equipment  which  she  herself 
could  not  supply,  the  utmost  effort  would  be  made  to  ob- 
tain these  in  America. 

It  was  shown  by  the  remarks  of  all  the  speakers  that 
America  will  have  only  the  fairest  kind  of  competition 
in  the  world's  markets,  and  that  England's  boast  is  that 
no  discrimination  is  shown,  not  only  in  the  case  of  Amer- 
ican ships,  but  in  the  case  of  any  maritime  power.  It  was 
plainly  shown  both  by  the  British  and  American  speakers 
that  the  place  in  the  world's  merchant  marine  formerly 
held  by  Germany  should  now  be-  held  by  the  United 


432        THE  INTERNATIONAL  TRADE  CONFERENCE 

States,  and  that  working  in  the  closest  harmony  with 
England,  as  brother  Anglo-Saxons,  the  commerce  of  the 
world  should  be  carried  on  with  every  vessel  working  at 
100  per  cent  efficiency. 

Mr.  Edward  N.  Hurley,  formerly  chairman  of  the 
United  States  Shipping  Board,  in  a  very  happy  speech, 
testified  to  the  hearty  cooperation  of  the  British  ship- 
owners and  admiralty  during  the  war,  and  saw  nothing 
ahead  but  the  same  spirit  in  the  years  of  peace. 

By  other  speakers  the  hope  that  Britain  and  America 
should  sit  at  the  same  table  and  in  amity  arrange  for  a 
full  and  complete  shipping  program  was  plainly  stated. 

It  was  voted  that  the  Chairman  appoint  at  his  discre- 
tion an  advisory  committee  to  continue  the  investigation 
and  discussion  begun  in  these  conferences  on  the  subject 
of  coal.  To  this  same  committee  were  referred  the  reso- 
lutions of  the  Mercantile  Handling  Machinery  Associa- 
tion and  the  petition  submitted  on  behalf  of  the  Millers 
National  Federation  of  Chicago  by  Mr.  F.  H.  Price,,  a 
delegate  to  the  Conference. 

The  meeting  adjourned  at  4  o'clock. 

FRANCE. 

The  final  session  of  the  Shipping  Committee  was  held 
on  Wednesday,  October  23,  at  10  A.  M.,  in  the  Submarine 
Grill,  it  having  been  agreed  by  the  French  Commission 
as  well  as  the  Shipping  Committee  to  change  from  the 
scheduled  afternoon  session  to  the  morning  in  order  that 
certain  members  of  the  Committee  might  be  present. 

There  were  present  the  following  members  of  the  Com- 
mittee: Mr.  Franklin,  the  Chairman;  Mr.  Myrick,  the 
Vice-Chairman ;  Messrs.  Day,  Dearborn,  Gordon,  Hurley, 
Kirlin,  Ogden,  Palen,  Raymond,,  Taylor,  and  Stowell ;  Mr. 
Taylor  of  the  United  States  Shipping  Board,  Mr.  Lane 
of  the  United  States  Shipping  Board,  Mr.  Frost  of  the 
State  Department,  Mr.  Chiesa  of  the  Department  of  Com- 
merce, and  Mr.  Clagstone  of  "The  Nation's  Business," 
and  the  following  members  of  the  French  Mission:  M. 


THE  INTERNATIONAL  TRADE  CONFERENCE        433 

Tirman,  M.  Andre  Homberg,  M.  Pellerin  de  La  Touche, 
M.  Waddington,  M.  Roche,  M.  Parmentier,,  M.  de  Fremin- 
ville,  and  M.  Boyer. 

M.  Pellerin  de  La  Touche  presented  the  statement  of 
the  French,  reading  it  in  French ;  at  the  same  time  each 
member  of  the  Committee  was  furnished  with  a  copy  of 
the  translation.  This  statement,  which  covered  eight 
pages,  was  a  very  clearly  defined  and  well  presented  story 
of  the  French  shipping  situation,  emphasizing  the  pre- 
war conditions,  the  great  losses  sustained  by  submarine 
warfare,  and  the  present  condition  of  the  merchant  fleet. 

France's  three  requests  for  consideration  by  the  Com- 
mittee are  here  quoted  verbatim  from  the  report: 

1.  That  the  German  steamers  which  are  still  in  the 
hands  of  the  United  States  Shipping  Board  and  which 
have  been  used  to  bring  back  to  your  shores  your  gallant 
soldiers,  be  allotted  to  France,  England  receiving  as  com- 
pensation the  big  steamers  which  are  now  being  com- 
pleted in  the  German  shipyards  and  amounting  to  300,- 
000 (?)  tons. 

2.  That  the  settlement  for  our  ships  requisitioned  in 
July,,  1917,  in  your  shipyards  be  made  shortly,  either  by 
giving  back  these  ships  or  similar  ones,  taking  into  con- 
sideration in  a  liberal  manner  the  depreciation  of  the 
first  named  and  the  decrease  we  can  figure  in  the  future 
of  the  value  of  the  latter. 

3.  That  liberal  terms  for  payment  be  made  to  those  of 
our  shipowners  who  will  negotiate  in  the  United  States 
for  the  purchase  of  ships  built  or  to  be  built. 

The  statement  concluded  with  an  appeal  to  the  justice 
and  fair  play  of  America  in  the  matter  of  assisting 
France  to  rehabilitate  her  merchant  marine,  and  put  it 
on  the  same  footing  commercially  as  before  the  war. 

An  interesting  and  lively  discussion  followed  in  which 
a  number  of  important  facts  were  developed.  Mr.  Hur- 
ley and  Mr.  Gordon,  in  connection  with  their  work  in 
France  with  the  Inter-Allied  Maritime  Transport  Coun- 
cil, referred  to  the  agreement,  to  which  the  French  were 
a  party,  that  the  German  ships  allocated  to  the  United 
States  during  the  war  were  to  be  returned  to  that  Coun- 
cil and  not  to  the  French  nation  directly. 


434        THE  INTERNATIONAL  TRADE  CONFERENCE 

England  has  agreed  to  build  for  France  500,000  tons 
of  merchant  ships,  of  which  170,000  tons  have  been  deliv- 
ered. These  vessels  range  in  size  from  3,500  tons  up  to 
10,000  tons.  M.  de  Latouche  spoke  of  an  advantageous 
contract  that  had  been  arranged  between  the  Compagnie 
Generale  Transatlantique  and  the  City  of  Paris  whereby 
a  number  of  smaller  ships,  unsuited  for  general  overseas 
cargo  work,,  had  been  assigned  to  the  city  of  Paris  coal 
trade  on  a  five-year  contract  basis,  and  could  therefore 
be  considered  as  a  profitable  investment. 

Detailed  explanation  of  the  tonnage  in  building  and 
being  built  for  France  in  American  shipyards  which  the 
United  States  was  forced  to  take  over  for  war  purposes 
followed.  Eighty  per  cent  of  the  purchase  price  of  these 
vessels  had  been  paid  by  the  French  shipowners  and  to 
date  it  has  been  impossible  to  recover  this  payment.  In 
rebuttal,  Mr.  Taylor  of  the  United  States  Shipping  Board, 
pointed  out  the  fact  that  settlements  had  been  made  with 
certain  of  the  Allied  and  neutral  countries  on  this  very 
question;  money  payments  had  been  made  rather  than 
ships  returned,  although  the  actual  return  of  the  vessels 
had  been  asked  for  in  each  case.  Mr.  Taylor  pointed  out 
that  the  actual  return  of  requisitioned  vessels  to  France 
would,  in  a  measure,  tend  to  stultify  the  previous  action 
of  the  United  States  Shipping  Board. 

In  opposition  to  this  view  the  French  advanced  the  ar- 
gument that  since  the  shipyards  of  France  had  been  ab- 
solutely idle  during  the  war  period,  and  the  entire  indus- 
trial resources  of  the  war  had  been  centered  on  the  man- 
ufacture of  munitions,  a  large  part  of  which  in  the  later 
years  of  the  war  were  supplied  to  America,  the  case  of 
France,  in  her  request  for  the  return  of  the  ships,  was  an 
entirely  different  proposition  from  that  of  the  other 
countries. 

Mr.  Kirlin  then  spoke  concerning  his  understanding  of 
this  agreement.  Negotiations  with  the  French  concern- 
ing the  return  of  23  or  27  ships  and  six  ships  for  the 
French  Government  railways,  have  centered  entirely 
upon  the  return  of  the  ships,,  with  no  alternative  propo- 


THE  INTERNATIONAL  TRADE  CONFERENCE        435 

sition  to  settle  in  cash,  nor  any  offer  on  the  part  of  the 
United  States  Shipping  Board  to  settle  in  cash.  The  dif- 
ficulty in  these  negotiations  has  been  largely  due  to  the 
fact  that  the  United  States  Shipping  Board  has  not  yet 
been  able  to  furnish  a  statement  of  the  final  cost  of 
building  these  vessels. 

It  was  shown  that  the  French  desire  to  purchase  at 
least  3,500,000  tons  additional  shipping  to  bring  the  total 
merchant  marine  to  6,000,000  tons ;  that  ships  will  be  pur- 
chased in  America  provided  that  the  cost  compares  favor- 
ably with  that  of  other  shipbuilding  nations,  and  if 
favorable  terms  of  payment  can  be  arranged. 

On  query  by  Mr.  Gordon  concerning  the  500,000  tons 
of  shipping  to  be  built  by  Germany  for  the  Allies  for  the 
next  five  years,  the  French  stated  that  they  hoped  to  pur- 
chase a  part,  if  not  the  greater  part,  for  they  believed 
that  the  ships  will  be  offered  at  as  low  a  figure  as  any- 
where in  the  world. 

At  the  conclusion  of  the  presentation  of  the  French 
case  the  members  of  the  French  Commission  withdrew, 
giving  an  opportunity  for  the  general  discussion  of  the 
situation  among  the  members  of  the  Committee. 

At  this  point  the  following  committees  were  named : 

Advisory  Committee. 

MR.  GORDON,  Chairman. 

MR.  POWELL. 

MR.  OGDEN. 

MR.  DEARBORN. 

MR.  KIRLIN. 

MR.  RAYMOND. 

Coal  Committee. 

MR.  OGDEN. 
MR.  DAY. 
MR.  PALEN. 

It  was  understood  that  further  meetings  of  the  Ad- 
visory Committee  would  be  held  in  order  to  formulate  a 
report  for  the  use  of  the  Chamber  of  Commerce.  These 
meetings  are  subject  to  the  call  of  the  Chairman. 


436        THE  INTERNATIONAL  TRADE  CONFERENCE 

Votes  of  thanks  were  then  passed  to  the  Chairman,  the 
members  of  the  Committee,,  the  representatives  of  the 
United  States  Shipping  Board  and  the  State  Department. 

The  final  conference  adjourned  at  12.15  P.  M. 


REPORT  OF  COMMITTEE. 

Separated  from  many  matters  that  were  suggested  for 
consideration  by  the  visiting  delegates,  there  are  a  num- 
ber of  outstanding  facts  to  which  attention  is  herein 
particularly  directed. 

1.  Belgium  desires  lower  freight  rates,  and  it  was  the 
suggestion  of  the  Belgian  delegates  that  if  there  were  a 
free  market   for   tonnage    throughout   the  world,  rates 
would  fall  and  Belgium  would  participate  in  the  advan- 
tage of  the  decline. 

There  is  a  great  question,  however,  if  it  is  possible  to 
get  free  tonnage  in  the  manner  desired.  England  is  in 
great  need  of  foodstuffs.  Indeed,  it  has  been  said  that 
England's  condition  in  this  respect  in  the  coming  winter 
will  be  more  severe  than  it  was  at  any  time  during  the 
war.  Under  those  circumstances,  it  is  hardly  to  be  ex- 
pected that  British  shipping  will  be  left  free  to  seek  the 
most  profitable  trades,  and  until  that  permission  is 
granted,  obviously  there  can  be  no  such  thing  as  free 
tonnage. 

2.  Italy,  although  she  has  lost  heavily  in  tonnage  dur- 
ing the  war,  is  in  a  fair  way  of  recouping  these  losses 
through  the  construction  of  new  tonnage  in  her  own 
yards,  by  purchases  abroad,,  and  by   the    acquisition  of 
Austro-Hungarian  tonnage    that    formerly    hailed  from 
Adriatic  ports.    Italy's  great  necessity  is  coal — coal  with 
which  to  re-establish  herself  industrially;  for  the  pur- 
poses of  transportation;  and  for  the  health  and  comfort 
of  her  people.    This  necessity  must  be  met  and  it  can  only 
be  met  by  America.    Previous  to  the  war  Italy  imported 
over  ten  million  tons  of  coal  annually  from  England,  and 
lesser  amounts  from  France,  Germany  and  the  United 
States.     But  new    importations    from    those    countries, 
other  than  the  United  States,  have  so  greatly  diminished 
as  necessarily  to  oblige  Italy  to  rely  almost  wholly  upon 
the  United  States.     Unless  the  United  States  fulfills  in 
this  respect  Italian  expectations,  there  must  necessarily 
result  throughout  Italy  great  distress.     The  Committee, 


THE  INTERNATIONAL  TRADE  CONFERENCE        437 

therefore,  believes  that  it  is  of  the  highest  importance 
that  there  should  be  a  coordination  of  effort  in  the  United 
States  to  come  to  Italy's  rescue.  It  is  with  great  satis- 
faction that  the  Committee  recognizes  the  fact  that  of  all 
the  nations  in  need  of  coal  Italy  is  contributing  more 
largely  than  any  other  in  providing  for  her  own  neces- 
sities. 

3.  France  is  in  need  of  tonnage  and  of  shipbuilding 
materials.    During  the  war  France  was  unable  to  make 
use  of  her  shipyards  for  the   construction   of  merchant 
tonnage  because  the  yards  had  been  devoted  wholly  to 
war  purposes.    After  the  beginning  of  the  war,  but  be- 
fore the  United  States  entered  the  war,  this  tonnage  was 
all  requisitioned.     Up  to  the  present  moment,  no  settle- 
ment has  been  made  for  the  compensation  of  the  private 
owners  of  that  requisitioned  tonnage.      The    claims  of 
France  alone,,  of  all  the  nations  similarly  situated,  have 
not  been   settled.     The  Committee   is   advised,  however, 
that  the  whole  matter  is  the  subject  of  present  negotia- 
tion and  that  a  satisfactory  adjustment  of  these  claims 
will  soon  be  reached. 

France  would  like  to  purchase  from  the  Shipping 
Board,  or  have  built  in  American  shipyards,  several  hun- 
dred thousand  tons  of  her  merchant  ships,  but  even  if 
this  desire  were  promised  fulfillment  by  the  Shipping 
Board,  the  prices  at  which  American  Government  ship- 
ping is  now  being  held  precludes  any  thought  of  selling 
American  tonnage  to  France  at  this  time.  But  these  are 
matters  to  which  the  Committee  proposes  to  give  con- 
sideration. 

4.  The  British  delegates  alone  had  no  request  to  make 
for  material  support  from  the  United  States  in  the  re- 
establishment  of  her  merchant  marine  and  overseas  trade, 
except  the  good  will  of  the  American  people.    Honorable 
competition  on  the  part  of  the  world  was  heartily  in- 
vited in  the  belief  that  there  was  ample  room  for  both. 

It  early  appeared  to  your  Committee  that  an  adequate 
consideration  of  the  problems  herein  briefly  set  forth  was 
impossible  during  the  life  of  this  Conference.  There  are 
top  many  interests  involved  to  be  reached  and  brought 
within  a  possible  field  of  cooperation  to  permit  of  any 
specific  action  at  this  time.  In  view  of  this  circumstance, 
therefore,  your  Committee  has  appointed  two  subcommit- 
tees, one  to  deal  with  all  of  the  problems,  save  that  of 
coal,  that  have  been  presented,  and  another  to  devote 
itself  exclusively  to  the  coal  question,  particularly  as  it 


438        THE  INTERNATIONAL  TRADE  CONFERENCE 

affects  Italy.  This  latter  subcommittee  is  to  act  in  co- 
operation with  a  subcommittee  of  the  Coal  Committee. 
Already  the  two  committees  have  had  a  preliminary 
meeting,  and  it  may  be  affirmed  with  considerable  as- 
surance that  if  the  tentative  plan  of  procedure  marked 
out  is  carried  into  effect,  it  will  result  not  only  to  the  very 
great  benefit  of  the  Italian  people,  but  will  contribute  to 
the  establishment  of  a  coal  trade  with  the  Mediterranean 
ports  that  will  be  of  so  great  advantage  to  the  United 
States  in  the  years  to  come  as  alone  to  justify,  from  the 
viewpoint  of  an  American  citizen,  calling  this  Conference. 
In  conclusion,  your  Committee,  with  considerable  sat- 
isfaction, calls  attention  to  the  fact,  that  the  Committee 
was  made  up  of  sixteen  extremely  busy  men,  and  that 
fifteen  of  them  were  present  at  practically  every  session. 

P.  A.  S.  FRANKLIN,  Chairman. 


COMMITTEES  ON  TEXTILES. 
BELGIUM. 

M.  DE  HEMPTINNE. 

M.  JANSSEN. 

M.  CANON-LEGRAND. 

M.  VAN  DEN  VEN. 


FRANCE. 


M.  WADDINGTON. 
M.  GODET. 
M.  VARAIGNE. 
M.  POTIN. 
M.  ROCHE. 
M.  TIRMAN. 

M.   DOLLEANS. 


GREAT  BRITAIN, 


MR.  FRANK  MOORE. 
SIR  ARTHUR  SHIRLEY  BENN. 
SIR  JAMES  HOPE  SIMPSON. 
MR.  MARSHALL  STEVENS. 
HON.  J.  G.  JENKINS. 
BAILIE  JOHN  KING. 


THE  INTERNATIONAL  TRADE  CONFERENCE 


439 


ITALY. 


G.  MYLIUS. 
G.  GRANATA. 

0.  ROSSATI. 

1.  MARCHISIO. 

P.   DE   ClCCO. 

G.  B.  CECCATO. 
G.  P.  VILLA. 
V.  MENEGHELLI. 


AMERICA. 

JOHN    R.   MUNN,   Chairman; 
President,  Textile  Manufacturers'  Alliance  Corporation. 

New  York   City. 

PAUL  T.  CHERINGTON,  Vice-Chairman  and  Secretary; 
Secretary-Treasurer,  National  Association  of  Wool  Manufacturers, 

Boston,  Mass. 

VERNON  E.  BLAGBROUGH,  Assistant  Secretary, 

Chamber  of  Commerce  of  the  United  States, 

Woolworth  Building,  New  York  City. 

ALLEN,   ETHAN,  New  York  City. 

BLANCHARD,  F.  S.,  Pacific  Mills,  Boston,  Mass. 

BLUMENTHAL,  SIDNEY,  President,  Sidney  Blumenthal  &  C'x.  New 
York  City. 

COPELAND,  PROF.  MELVIN  T.,  Cambridge,  Mass. 

DANE,   CHESTER  L.,  President,   American  Woolen   Products1   Com- 
pany, New  York  City. 

Foss,  GRANVILLE  E.,  Brightwood  Manufacturing  Co.,  North  An 
dover,  Mass. 

HODGSON,  GEO.  H.,  Vice-President,  Cleveland  Worsted  Mills   Cleve- 
land, Ohio. 

MACCOLL,    JAMES   R.,    Treasurer,    Lorraine    Manufacturing   Co 
Pawtucket,  R.  I. 

MASTERS,  FRANCIS  R.,  Lawrence  &  Co.,  New  York  City. 

VICTOR,   HENRY  M.,   President,   Union   National   Bank,   Charlotte, 
N.  C. 

VILLA,  A.  P.,  President,  A.  P.  Villa  &  Bros.,  Inc.,  New  York  Citv. 

WEBB,  CHARLES  J.,  Charles  J.  Webb  &  Co.,  Philadelphia    Pa. 


440        THE  INTERNATIONAL  TRADE  CONFERENCE 
COMMITTEE  ON  TEXTILES. 

AMERICAN. 

Meeting  for  Organization,  2  P.  M.,  October  20. 
Present : 

JOHN  R.  MUNN,  Chairman. 

P.  T.  CHERINGTON,  Secretary. 

V.  E.  BLAGBROUGH,  Assistant  Secretary. 

F.  S.  BLANCHARD. 

SIDNEY  BLUMENTHAL. 

M.  T.  COPELAND. 

CHESTER  L.  DANA. 

GRANVILLE  E.  Foss. 

F.  R.  MASTERS. 

V.  F.  VILLA. 

CHARLES  J.  WEBB. 

The  meeting  was  called  to  order  by  the  Chairman,,  Mr. 
Munn,  who  stated  the  general  results  of  the  preliminary 
conference  with  the  foreign  delegates  held  in  New  York 
last  week.  The  textile  industry,  Mr.  Munn  said,  is  called 
upon  to  export  a  surplus  which  does  not  exist.  Raw  cot- 
ton, apparently,  constitutes  the  only  exception  to  the 
statement  that  among  textiles  and  textiles  materials,  the 
United  States  has  little  that  it  can  export  a  this  time. 

A  general  discussion  followed,  participated  in  by 
Messrs.  Masters,  Munn,  Copeland  and  Foss,  which  de- 
veloped approximately  the  same  point  with  greater  or 
less  detail  with  respect  to  the  foreign  countries  repre- 
sented at  the  Conference.  Mr.  Foss  called  particular  at- 
tention to  the  shortage  of  yarns  in  this  country,  and 
others  mentioned  the  fact  that  we  were  now  importing 
mohair  yarns  and  some  others  from  Europe. 

Mr.  Blumenthal  made  the  point  that  the  demoraliza- 
tion of  the  European  textile  industry  was  due  partly  to 
the  actual  removal  and  destruction  of  machines,  partly 
to  the  lack  of  repairs,  and  partly  to  the  deterioration  of 
manpower,,  but  declared  that  the  best  thing  to  be  done 


THE  INTERNATIONAL  TRADE  CONFERENCE       441 

was  to  put  the  industries  of  these  foreign  countries  in  a 
position  to  use  their  equipment. 

Mr.  Webb  declared  that  high-count  worsted  yarns  and 
tops  are  now  being  imported  into  the  United  States,  and 
the  prices  in  these  foreign  countries  are  cheaper  than 
they  are  here. 

Mr.  Masters  said  that  there  probably  would  be  a  con- 
tinual exportation  of  hosiery  and  knit  goods  to  France, 
and  also  to  England,  but  that  the  total  value  probably 
would  not  be  large  in  comparison  with  the  total  produc- 
tion in  this  country. 

After  further  discussion  participated  in  by  practically 
all  of  the  members  of  the  committee  present,  it  was 
agreed  that  any  conference  with  the  foreign  delegates,  or 
inquiries  and  discussions,  should  aim  to  bring  out  the 
actual  facts  concerning  the  four  principal  groups  or 
points,  as  follows : 

1.  The  requirement  of  each  of  the  four  foregoing  coun- 
tries  in   both   raw   materials   and   some   manufactured 
products,  and  wherever  such  business  did  exist,  in  fin- 
ished products  as  well. 

2.  Pre-war  production  conditions  and  tendencies,  in- 
cluding the  number  of  spindles  in  actual  operation,  of 
working  hours  now  prevailing  as  compared  with  pre-war 
times,  and  the  general  and  social  labor  conditions. 

3.  The  amount  of  exportable  surplus  in  each  of  the 
foreign  countries  and  in  the  United  States  in  the  case  of 
the  principal  items  of  textiles  under  present  conditions 
as  compared  with  pre-war  times. 

4.  The  method  by  which  any  commercial  obligations 
entered  into  as  a  result  of  general  agreements  as  to  pol- 
icy should  be  guaranteed, 

a.  Whether  by  foreign  government. 

b.  By  foreign  bankers. 

c.  By  the  foreign  industry. 

d.  By  the  United  States  Government. 

e.  By  bankers  in  the  United  States. 

Chairman  Munn  then  appointed  the  following  com- 
mittee to  serve  as  a  special  reception  committee  in  con- 
nection with  welcoming  the  foreign  delegates  at  the  meet- 
ing  of  the  Textiles  Committee : 


442        THE  INTERNATIONAL  TRADE  CONFERENCE 

MR.   Foss,  for  Belgium. 

MR.  MASTERS,  for  France. 

MR.  DANA,  for  Italy. 

PROFESSOR  COPELAND,  for  England. 


MEETING  8  P.  M.,  OCTOBER  20. 

BELGIUM. 
Present : 

JOHN  R.  MUNN,  Chairman. 

V.  E.  BLAGBROUCH,  Assistant  Secretary. 

SIDNEY  BLUMENTHAL. 

W.  A.  GRAHAM  CLARK. 

M.  T.  COPELAND. 

CHESTER  L.  DANE. 

GRANVILLE  E.  Foss. 

JOHN  S.  LAWRENCE. 

JAMES  R.  MACCOLL. 

F.  R.  MASTERS. 

V.  P.  VILLA. 

H.  M.  VICTOR. 

CHARLES  J.  WEBB. 

M.  CANON-LEGRAND. 

The  Belgian  Textile  Delegates  not  having  arrived  in 
Atlantic  City,  the  first  part  of  the  evening  was  devoted 

Following  the  discussion  by  M.  LeGrand,  Mr.  John  S. 
Canon-LeGrand,  of  the  Belgian  Mission. 

Following  the  discussion  by  M.  Legrand,  Mr.  John  S. 
Lawrence  introduced  a  set  of  resolutions  concerning  cot- 
ton, which  had  been  submitted  by  the  United  States  dele- 
gate members  at  the  World  Cotton  Conference,  held  in 
New  Orleans,  as  follows. 

"WHEREAS,  a  great  and  unprecedented  emergency  now 
exists  in  the  world  requiring  prompt  assistance  to  the 
countries  of  Europe  in  order  to  restore  as  quickly  as  pos- 
sible the  operation  of  their  industries  and  a  return  to 
normal  economic  conditions;  and, 

"WHEREAS,  a  broad  public  policy  demands  an  increase 
in  world-wide  production  with  the  least  possible  delay,  to 


THE  INTERNATIONAL  TRADE  CONFERENCE        443 

the  end  that  the  existing  high  level  of  prices  may  be  re- 
duced; and, 

"WHEREAS,  certain  essential  industries  in  Europe 
which  should  be  producing  are  not  now  able  to  do  so 
owing  to  their  inability  to  secure  the  necessary  materials 
on  sufficient  long-time  credits  to  permit  them  to  resume 
business  operations  and  production ;  and, 

"WHEREAS,  the  materials  required  involve  credits  of 
such  character  that  the  usual  channels  of  credit  exten- 
sion are  unable  to  meet  them,  requiring  the  assistance  of 
some  government  agency  capable  of  safely  extending,  al- 
locating and  controlling  such  credits  and  cooperation  with 
other  governments,  creating  a  form  of  investment  secu- 
rity appealing  to  the  general  public ;  and, 

"WHEREAS,  appreciating  this  situation  our  Government 
has  authorized  an  extension  of  ONE  BILLION  DOLLARS  of 
credit  to  finance  our  exports  through  the  agency  of  the 
War  Finance  Corporation;  and, 

"WHEREAS,  this  situation  requires  unity  of  effort  and 
cooperation  between  other  governments  and  our  Govern- 
ment, and  involves  credit  of  longer  term  than  American 
commercial  banking  machinery  is  justified  to  assume; 
therefore,  be  it 

"Resolved,  That  we  recommend  that  such  enabling 
legislation  be  enacted  by  Congress  as  will  permit  the  War 
Finance  Corporation  to  purchase  directly  self-liquidating 
secured  approved  obligations  of  foreign  manufacturers, 
corporations,  firms  or  merchants,  endorsed  by  foreign 
commercial  banks,,  or  bankers  and  guaranteed  by  the 
Government  Bank  and  approved  by  the  recognized  gov- 
ernments of  the  respective  countries,  to  be  used  by  such 
manufacturers,  corporations,  firms  or  merchants  for  the 
purchase  in  the  United  States  of  essential  materials 
necessary  for  the  resumption  of  business  operations  and 
production  in  those  countries,  thus  giving  empolyment 
to  their  people  and  aiding  in  a  return  to  political,  social 
and  economic  stability,  and  for  the  production  of  such 
merchandise  as  may  be  exported,  and  to  provide  exchange 
for  further  purchases.  Be  it  further 

"Resolved,  That  it  is  the  sense  of  this  Conference  that 
if  the  aid  of  the  Government  of  the  United  States  can  be 
extended  in  the  manner  above  indicated,  to  provide  for 
this  emergncy  financing  for  which  no  other  agency  now 
exists  than  the  War  Finance  Corporation,  that  the  exist- 
ing banking  and  credit  machinery  of  the  United  States 
will  be  adequate  to  provide  for  the  general  financing  inci- 


444        THE  INTERNATIONAL  TRADE  CONFERENCE 

dental    to    normal    international    banking    operation,?. 
Finally 

"Resolved,  That  it  is  our  opinion  that  with  the  Govern- 
ment cooperation  as  above  outlined,  at  least  one  million 
bales  of  cotton,  together  with  large  quantities  of  other 
essential  products  could  be  made  immediately  available 
for  those  European  industries  which  are  now  unable  to 
operate." 

In  the  course  of  the  informal  discussion  following,  Mr. 
Cherington  raised  the  question  whether  it  would  not  be 
advisable  in  negotiating  new  commercial  treaties  with 
the  chief  allied  and  associated  countries,  to  include  a 
provision  for  clauses  which  would  permit  the  refunding 
of  all  tariff  duties  on  merchandise  from  these  countries,, 
imported  into  the  United  States  for  a  specified  term  of 
years,  upon  the  submission  of  proof  that  the  price  paid 
for  the  merchandise  imported  in  the  country  of  produc- 
tion, was  not  less  than  the  prevailing  market  price  in  the 
chief  market  in  the  United  States  for  goods  essentially 
similar. 

FRANCE. 

A  meeting  of  the  Textiles  Committee  with  the  French 
representatives  was  held  at  2.15  P.  M.  Tuesday  afternoon, 
October  21,  at  the  Hotel  Traymore. 

The  following  persons  were  present : 

Representing  France. 

M.  EDUARD  DOLLEANS. 
M.  WADDINGTON. 
M.  GODET. 
j 

Representing  the  Committee. 

MR.  JOHN  R.  MUNN,  Chairman. 

MR.  PAUL  T.  CHERINGTON,  Secretary. 

MR.  V.  E.  BLAGBROUGH,  Assistant  Secretary. 

MR.  CHESTER  DANE. 

MR.  W.  A.  GRAHAM  CLARK. 


THE  INTERNATIONAL  TRADE  CONFERENCE        445 

MR.  CHARLES  J.  WEBB. 
MR.  J.  J.  MERRITT. 
MR.  GRANVILLE  E.  Foss. 
MR.  F.  S.  BLANCHARD. 
MR.  MELVIN  T.  COPELAND. 
MR.  SIDNEY  BLUMENTHAL. 
MR.  F.  R.  MASTERS. 
MR.  EDWIN  M.  SMITH. 
MR.  A.  P.  VILLA. 
MR.  JAMES  E.  MACCOLL. 
MR.  JOHN  HANRAHAN. 
MR.  GEO.  H.  HODGSON. 
MR.  D.  R.  CALHOUN. 

After  the  meeting  had  been  called  to  order  by  the 
Chairman,  Mr.  John  R.  Munn,  M.  Waddington  of  the 
French  delegation  was  introduced,  and  he  presented  some 
statistics  concerning  the  present  state  of  the  textile  in- 
dustry in  France,  among  the  more  significant  of  which 
were  the  following : 

Cotton  spindles  in  France 9,300,000 

Spindles  operating  on  Egyptian  cotton 1,500,000 

Spindles  operating  on  American  cotton 7,800,000 

Total  number  of  spindles  in  northern  France 

before  the  war 1,100,000 

Approximate  amount  of  American  cotton  re- 
quired (bales)  1,000,000 

Number  of  looms  operating  on  cotton 182,000 

Total  number  of  employes  in  cotton  industry 
(spinning  and  weaving),  men,  women  and 

children    300,000 

Approximate   number   of   other  employes   be- 
sides spinners  and  weavers 1,500,000 

M.  Waddington  declared  that  after  the  complete  cessa- 
tion of  textile  operations  during  the  month  of  August, 
1914,  there  was  a  resumption  almost  wholly  on  military 
production,  but  even  this  showed  a  reduction  of  not  less 
than  eighteen  and  probably  not  more  than  forty-five  per 
cent  of  normal.  In  addition  to  the  lack  of  labor,,  the  lack 
of  raw  material  and  the  shortage  of  coal,  both  of  which 
were  due  to  the  failure  of  transportation,  greatly  hin- 
dered the  operation  of  the  industry. 


446        THE  INTERNATIONAL  TRADE  CONFERENCE 

M.  Waddington  gave  a  summary  of  conditions  in  the 
French  industry  since  the  signing  of  the  armistice.  He 
showed  that  in  general  throughout  the  occupied  territory 
the  Germans  had  stripped  the  mills  of  all  copper  parts 
and  belting.  Apparently  they  had  intended  to  keep  the 
territory  permanently,  and  left  the  looms  intact.  When 
defeat  became  imminent,  however,  they  decided  to  break 
up  what  machinery  they  could  and  remove  the  rest.  This 
was  not  completed  and  much  of  the  machinery  was  over- 
taken by  the  French  army  before  it  reached  the  fron- 
tier. Work  has  been  resumed  in  many  of  the  mills  of 
northern  France,  and  the  probabilities  are  that  it  will  not 
take  more  than  a  few  months  to  almost  completely  restore 
the  more  important  parts  of  the  cotton  industry  of  north- 
ern France. 

Notwithstanding  the  shortage  of  labor  due  to  the  large 
number  of  men  killed  and  disabled,  and  the  exhaustion 
of  the  women  laborers,  the  probabilities  are  that  the 
restoration  of  the  industry  will  not  take  long.  The  prin- 
cipal obstacle  is  the  securing  of  an  adequate  supply  of 
raw  material,  and  the  chief  feature  of  this  problem  is  the 
necessity  of  getting  some  kind  of  extension  of  time  in 
payment  for  the  cotton,  so  that  the  payment  may  be  made 
after  the  changed  situation  has  to  some  extent  improved. 
In  other  words,  M.  Waddington  took  the  position  that  the 
French  cotton  industry  would  be  able  to  meet  practically 
all  of  the  difficulties  of  the  situation,  provided  they  were 
not  handicapped  by  this  individual  burden,  which  could,, 
without  undue  tax,  be  avoided  by  postponement. 

In  connection  with  the  woolen  industry,  M.  Wadding- 
ton read  a  translation  of  a  statement  prepared  by  M. 
Godet,  covering  the  woolen  and  worsted  industries.  This 
statement  showed  that  the  reconstruction  of  these  indus- 
tries in  northern  France  would  be  sufficient  for  taking 
care  of  home  consumption  in  France  for  the  current  year. 
The  total  restoration  for  the  country  would  probably 
amount  to  twenty-five  per  cent  of  the  pre-war  normal 
capacity  in  these  industries,  if  immediate  needs 
for  clothing  orders  had  been  placed  in  Bradford.  There 


THE  INTERNATIONAL  TRADE  CONFERENCE        447 

was  no  necessity  for  the  importation  from  the  United 
States  of  raw  materials  for  this  industry  in  so  far  as  cot- 
ton is  concrned. 

The  woolen  and  worsted  industries  of  France  are 
anxious  to  increase  to  something  like  pre-war  basis  their 
exports  of  high-grade  woolen  fabrics  to  the  United  States. 
In  this  they  are  somewhat  handicapped  by  the  tariff,  but 
with  the  proper  selling  conditions,  the  probabilities  are 
that  the  handicap  could  be  overcome. 

Other  matters  mentioned  by  M.  Godet  were  the  desira- 
bility of  relaxing  the  taxation  on  the  importation  of 
French  feathers  without  killing  birds,  and  also  in  the 
United  States  adequate  production  for  added  designs  and 
feathers. 

In  the  general  discussion  which  followed  M.  Godet  de- 
clared that  although  the  hours  of  labor  in  the  French 
textile  industry  had  been  reduced  from  ten  hours  per  day 
to  eight,  the  production  in  the  weave  looms  had  not  shown 
a  corresponding  decrease.  By  beginning  work  more 
promptly,  and  by  working  continuously  until  the  hour  of 
closing,  and  also  by  providing  adequate  assistance  in  the 
way  of  bobbin  boys,  etc.,  the  actual  amount  of  work  done 
in  the  weave  looms  had  been  increased  so  that  probably 
the  output  for  eight  hours  was  between  ninety-two  and 
ninety-seven  per  cent  of  the  output  previously  secured  in 
ten  hours. 

In  the  spinning  departments  this  is  not  true,  since  it 
is  impossible  to  run  the  spindles  economically  any  faster 
than  they  were  formerly  run.  The  output  of  the  spinning 
looms  is  about  eighty-five  per  cent  of  that  formerly  ob- 
tained. 

Wages  have  been  materially  increased  so  that  they  are 
now,  roughly  speaking,  from  two  to  two  and  one-half 
times  those  prevailing  during  the  pre-war  periods. 

In  reply  to  a  question  by  Chairman  Munn  as  to  how 
long  credit  would  be  required  for  the  cotton  supplied  by 
the  United  States,  M.  Godet  said  that  if  arrangements 
would  be  made  to  extend  the  time  of  payment  certainly 
as  much  as  one  year,  and  possibly  as  much  as  five  years, 


448        THE  INTERNATIONAL  TRADE  CONFERENCE 

it  would  greatly  simplify  the  strained  situation,,  and  would 
tend  to  assist  in  rectifying  exchange  conditions. 

In  reply  to  another  question  M.  Godet  said  that  he  knew 
of  no  effort  inaugurated  in  France  for  the  joint  guarantee 
of  credit  on  the  part  of  industry,  similar  to  the  Belgian 
arrangement. 

TUESDAY,  OCTOBER  21,  1919,  8:30  p.  M. 
AMERICA. 

Present : 

MUNN,  JOHN   R.,   Chairman. 

CHERINGTON,  MR.  PAUL  T.,  Secretary. 

BLAGBROUGH,  MR.  VERNON  E.,  Assistant  Secretary. 

BLUMENTHAL,  SIDNEY. 

CLARK,  W.  A.  GRAHAM. 

COPELAND,  PROF.  MELVIN  F. 

CALHOUJJ,  D.  R. 

DANE,  CHESTER  L. 

Foss,  GRANVILLE  E. 

HODGSON,  GEO.  H. 

LAWRENCE,  MR. 

MASTERS,  FRANCIS  R. 

WEBB,  CHARLES  J. 

Chairman  Munn,  read  a  statement  concerning  the 
French  requirements  in  the  matter  of  textiles  as  brought 
out  by  the  Conference,  in  the  afternoon.  This  statement 
was  made  the  basis  of  general  discussion  from  which  a 
number  of  specific  recommendations  emerged. 

On  the  motion  of  Mr.  Webb,  it  was  voted  to  include  in 
the  recommendation  a  provision  that  a  credit  of  two  hun- 
dred million  dollars  ($200,000,000)  should  be  extended  to 
France  for  the  purchase  of  raw  cotton. 

Mr.  Lawrence  submitted  resolution  as  follows : 

"We  are  in  favor  of  a  United  States  Government  loan  to 
France  for  the  purchase  of  cotton." 

This  resolution  was  referred  to  a  sub-committee  con- 
sisting of  Messrs.  Munn,  Copeland,  Lawrence  and  Cher- 
ington. 


THE  INTERNATIONAL  TRADE  CONFERENCE        449 

On  motion,  Chairman  Munn  appointed  the  following 
sub-committee  to  redraft  a  general  statement  of  the  re- 
quirements of  the  various  nations  as  brought  out  in  the 
Committee  discussions,  consisting  of  Messrs,  Blanchard, 
Cherington,  Copeland,  Lawrence,  Chairman  Mr.  Munn. 

On  motion  of  Mr.  Copeland,  the  following  resolution 
was  referred  to  sub-committee: 

"We  recommend  that  so  far  as  possible,  any  credit  ex- 
tended should  be  given  in  such  manner  as  to  avoid  fur- 
ther inflation  of  currency  in  the  United  States. 

ITALY. 

A  meeting  of  the  Committee  on  Textiles,  was  held  at 
10  a.  m.,  Wednesday,  October  22nd,  1919,  at  the  Hotel 
Traymore. 

Upon  roll-call  the  following  persons  were  present: 

Representing  Italy. 

G.  MYLIUS. 
I.  MARCHISIO. 
A.  JACCARINO. 
T.  TUCCIMEI. 
H.  TAVEIBA. 
P.  DECICCO. 
V.  MENEGHELLI. 

Representing  the  Committee. 

JOHN  R.  MUNN,  Chairman. 

V.  E.  BLAGBROUGH,  Assistant  Secretary. 

GRANVILLE  E.  Foss. 

CHESTER  L.  DANE. 

F.  S.  BLANCHARD. 

F.  R.  MASTERS. 

GEO.  H.  HODGSON. 

EDWIN  E.  SMYTH. 

MELVIN  T.  COPELAND. 

H.  M.  VICTOR. 

D.  R.  CALHOUN. 

W.  A.  GRANHAM  CLARK. 

M.  JOSEPH  CHIESA. 


450        THE  INTERNATIONAL  TRADE  CONFERENCE 

Chairman  Munn,  after  opening  the  session  introduced 
Mr.  Mylius,  who  read  a  prepared  statement  concerning 
the  Textile  Industries  of  Italy.  This  statement  as  given 
is  attached. 

The  following  points  were  brought  out  in  the  general 
discussion  which  followed  the  reading  of  the  report. 

1.  By  law,  night  work  by  women  and  children  is  en- 
tirely prohibited  in  the  mills.     Labor  organizations,  gen- 
erally speaking,  are  opposed  to  working  mills  in  more 
than  one  shift.     The  mills,  which  operated  two  shifts  be- 
fore the  war  still  do  so.     The  probabilities  are,  however, 
that  as  winter  comes  on,  and  it  is  evident  that  the  mills 
are  warmer  and  more  comfortable  than  the  weather  out- 
side, an  increased  amount  of  two  shift  work  may  be  pos- 
sible.   The  forty-eight  hour  week  is  now  universal,  and, 
it  is  generally  assumed,  that  the  reduction  in  production 
due  to  the  decrease  in  hours  of  work  is  roughly  ten  per 
cent,  of  the  normal  pre-war  figure.     The  present  wages 
paid  to  women  are  about  five  lire  per  day,  while  men  are 
paid  eight  lires,  and  some  cases  as  high  as  ten. 

2.  On  the  matter  of  equipment,  the  point  was  made 
that  there  are  about  140,000  looms  in  Italy,  of  which  not 
more  than  five  or  six  thousand  are  automatic.     The  war 
destroyed  possibly  two  thousand  looms.     There  are  in  all 
about  100,000  printing  machines,  about  one-half  of  which 
are  owned  by  a  single  concern. 

On  August  1st,  the  stocks  of  American  cotton  actually 
purchased  for  this  year's  use  were  about  276,000  bales, 
of  which  about  100,000  bales  were  still  in  the  United 
States,  the  remainder  being  either  in  transit  or  being  un- 
loaded in  Italy.  In  buying  cotton  this  year,  more  spot 
than  future  cotton  has  been  bought,  because  of  the  condi- 
tion of  the  market.  Probably  the  industry  is  pretty  well 
covered  up  to  the  end  of  May,  1920. 

Normal  stocks  are  usually  about  30,000  bales  at  the 
ports,  and  enough  more  to  make  up  100,000  bales  in  the 
mills. 

The  type  of  cotton  used  to  the  greatest  extent  in  the 
Italian  mills  is  full  American  middling,  either  Texas  or 
Mississippi.  Some  long  staple  also  is  used,  but  this  does 
not  amount  to  more  than  20,000  bales  per  year. 

Generally  speaking,  the  industry  is  in  good  financial 
condition,  and  needs  no  financial  help  at  this  time.  So 
far  as  exchange  affects  the  situation  the  many  problems 


THE  INTERNATIONAL  TRADE  CONFERENCE        451 

is  to  set  up  some  sort  of  an  Italian  Government  agency, 
which  would  assume  the  risk  for  a  period  of  years,  and 
allow  the  spinners  to  withdraw  from  the  transaction  and 
eliminate  uncertainly,  except  as  related  to  rules  of  the 
Government  agency. 

The  mills  of  Southern  Italy  have  as  a  rule  been  small, 
but  about  three  years  ago  about  300,000  spindles  and  20,- 
000  looms  were  merged  in  a  financial  control  in  the  form 
of  a  stock  company. 

The  export  business  of  Italy  in  cotton  goods  has  re- 
sumed only  very  slowly.  Some  Turkish  business  has  re- 
sumed, and  there  are  very  splendid  shipping  relations 
with  Salamatia  and  Constantinople. 

In  recent  months,  there  has  been  some  time  given  to 
encouraging  shipments  to  the  near  east  on  a  barter  basis, 
but  the  difficulty  in  operating  on  a  barter  basis  is  that 
the  industry  is  rather  highly  specialized,  and  there  are 
few  Italian  concerns  capable  of  handling  both  imports 
and  exports.  The  export  business  in  cotton  goods  ap- 
parently depends  for  its  success  on  conducting  a  special- 
ized sale  of  cotton  goods  both  in  Italy  and  abroad. 

GREAT  BRITAIN. 

At  a  meeting  of  the  Textiles  Committee  of  the  Inter- 
national Trade  Conference,  October  22nd,  1919,  the  fol- 
lowing members  were  present : 

British  Representatives. 

FRANK  MOORE,  LEICESTER,  England. 

J.  JOYCE  BRODERICK,  Washington,  D.  C. 

JOHN  KING,  Glasgow,  Scotland. 

J.  HOPE  SIMPSON,  Liverpool,  England. 

J.  G.  JENKINS,  London,  England. 

G.  E.  BERKES,  London,  England. 

C.  R.  CARRY,  Leicester,  England. 

American  Representatives. 

JOHN  R.  MUNN,  New  York  City. 
J.  R.  MACCOLL,  Providence,  R.  I. 


452        THE  INTERNATIONAL  TRADE  CONFERENCE 

EDWIN  W.  SMYTH,  Philadelphia. 

GEO.  K.  MYERS,  New  York  City. 

F.  R.  MASTERS. 

GEO.  H.  HODGSON,  Cleveland,  Ohio. 

D.  R.  CALHOUN,  St.  Louis. 

W.  A.  GRAHAM  CLARK,  Washington,  D.  C. 

CHESTER  L.  DANE,  New  York  City. 

FESSENDEN  S.  BLANCHARD,  Boston,  Mass. 

GRANVILLE  E.   Foss,   North  Andover,  Mass. 

H.  M.  VICTOR,  Charlotte,  N.  C. 

V.  E.  BLAGBROUGH,  Washington,  D.  C. 

MELVIN  T.  COPELAND,  Cambridge,  Mass. 

W.  R.  SIBLEY,  Washington,  D.  C. 

HOMER  HOYT,  Newark,  Del. 

PAUL  T.  CHERINGTON,  Boston,  Mass. 

Mr.  Frank  Moore  of  Leicester,  England,  made  a  gen- 
eral statement  in  which  he  said  that  apparently  the  cot- 
ton situation  had  already  been  pretty  well  thrashed  out 
at  the  New  Orleans  meeting.  So  far  as  the  wool  trade 
was  concerned,  he  said,  there  is  plenty  of  trade  for  all 
of  us.  The  devastated  countries,  he  said,  might  very  well 
be  supplied  from  the  United  States.  The  general  discus- 
sion which  followed  brought  out  the  fact  that  there  prob- 
ably would  be  some  reduction  in  output  in  the  textiles  in 
Great  Britain  as  a  result  of  the  curtailment  of  hours  to  a 
48-hour  week.  Mr.  Moore  said  the  normal  pre-war  con- 
sumption of  3,500,000  bales  of  cotton,  of  which  3,000,000 
came  from  the  United  States,  probably  would  not  be  mate- 
rially reduced.  He  said  that  Great  Britain  did  not  need 
special  credit  arrangements  for  conducting  this  matter, 
for  even  the  exchange  difficulties  he  believed  would  be 
discounted.  Manchester,  he  said,,  had  been  running  on 
short  hours — not  over  60  or  70  per  cent,  capacity — and 
the  mills  were  well  sold  up. 

The  British  representatives  made  it  clear  that  the  man- 
ufacturers of  Great  Britain  were  very  anxious  to  continue 
their  export  business  and  that  they  planned  to  make  every 
effort  to  revive  this  business  as  promptly  as  possible. 

Sir  James  Hope  Simpson  said  that  except  in  the  devas- 
tated countries,  the  commercial  connections  for  rebuilding 
the  British  export  business  in  textiles  already  exist,  and 


THE  INTERNATIONAL  TRADE  CONFERENCE        453 

that  with  production  resumed,  it  was  a  safe  assumption 
that  reasonable  restoration  of  British  export  business 
would  follow,  notwithstanding  the  fact,  that  wages  in 
England  have  been  doubled.  One  of  the  principal  diffi- 
culties in  the  industry  up  to  this  time,  he  said,  was  in  the 
matter  of  wool  combing.  Wool  combers  are  not  working 
well. 

In  replying  to  questions  concerning  the  credit  situation, 
Sir  James  Hope  Simpson  said  that  while  no  doubt  Great 
Britain  had  over  borrowed,  it  was  not  now  inclined  to 
extend  credits  unduly.  He  thought  it  quite  possible  that 
arrangements  might  be  made  in  various  quarters  for  the 
conduct  of  a  barter  business. 

Further  discussion  brought  out  the  point  that  usually 
the  heavy  purchases  of  raw  cotton  in  the  United  States 
for  use  in  Great  Britain  are  completed  by  the  end  of 
November,  or,  at  least,  by  the  end  of  the  calendar  year, 
so  that  probably  the  needs  for  1920  were  now  being  cared 
for  vigorously. 

Attention  was  also  called  to  the  fact,  that  in  view  of 
the  high  cost  of  building  and  equipment,  the  construction 
of  new  textile  mills  probably  would  be  very  slow  for  a 
number  of  years,  and  that  the  indications  were,  that  there 
would  be  a  shortage  of  cloth  of  practically  all  kinds  for 
a  long  time  to  come. 

It  was  also  shown  that  there  is  now  under  way  in  Eng- 
land a  general  movement  for  refunding  and  merging  fac- 
tories so  that  much  of  the  machinery  either  is  now  or 
soor  will  be  on  the  books  at  present  prices.  When  this 
has  taken  place  it  is  expected  that  more  machinery  will 
be  bought, 

Japanese  competition  was  generally  conceded  to  be  one 
of  the  disturbing  factors  in  the  textile  trade,  and  espe- 
cially in  the  trade  in  cotton. 

Sir  James  Hope  Simpson,  on  being  asked  concerning  the 
length  of  time  necessary  for  the  resumption  of  normal 
commerce  with  the  bordering  countries  to  the  south  and 
east  of  Germany,  said  that  he  thought  probably  it  would 
take  about  a  year  for  business  to  be  resumed  in  Rou- 


454        THE  INTERNATIONAL  TRADE  CONFERENCE 

mania,  and  in  Czecho-Slavonia.  On  the  other  hand,  he 
said,  he  thought  the  resumption  of  business  in  Finland 
and  Lithuania  would  not  take  as  long. 


REPORT  OF  COMMITTEE. 

The  Textile  Committee  has  endeavored  to  keep  the  dis- 
cussion confined  to  four  general  headings : 

1.  Merchandise  required  in  the  form  of: 

(a)   Raw  material. 

(6)   Semi-finished  products  such  as  yarns. 

(c)   Manufactured  goods. 

2.  The  present  productive  capacity  and  production  in 
the  foreign  countries  as  compared  with  the  pre-war  pro- 
duction>  and  the  tendencies  as  to  costs,  operations  and 
supplies. 

3.  Available   exportable   surplus   which   the   foreign 
country  has  now  or  desires  to  attain  in  the  re-establish- 
ment of  its  textile  industry,  also  the  exportable  surplus 
available  from  America. 

4.  The  basis  which  may  be  suggested  by  the  foreign 
missions  as  to  the  methods  of  procuring  their  require- 
ments. 

FOREIGN  TEXTILE  SITUATION  BY  COUNTRIES. 

FRANCE. 

The  Committee  on  Textiles  had  before  them  Messrs. 
Waddington,  Godet,  Potin  and  Dolleans  of  the  French 
delegation.  It  developed  that  France  was  desirous  of  re- 
establishing its  textile  industry  on  a  basis  which  would 
provide  for  their  domestic  requirements,  and  take  care  of 
the  French  Colonial  trade. 

Based  on  the  available  machinery  operated  to  a  reason- 
able commercial  capacity,  75%  of  the  production  will  be 
required  for  domestic  consumption,  and  the  remainder  of 
25%  would,  by  and  large,  be  utilized  in  the  export  trade, 
which  has  been  developed  largely  with  their  own  colonies 
under  preferential  tariff  rates. 

The  French  textile  requirements  appear  to  be  confined 
almost  entirely  to  raw  cotton,  and  they  estimate  a  total 
quantity  of  1,050,000  bales  of  American  cotton  per  an- 
num. This  will  enable  the  industry  to  operate  on  its  48- 


THE  INTERNATIONAL  TRADE  CONFERENCE        455 

hour  week,  and  provide  their  domestic  requirements  and 
export  surplus.  Any  reduction  in  this  quantity  of  raw 
cotton  will  tend  to 

(a)   Cut  down  full  operation  of  their  mills. 
(6)   Necessitate  a  reduction  in  consumption,  or 
(c)   Cause  a  loss  of  an  established  export  trade. 

The  French  delegation  is  anxious  to  secure  American 
cotton  of  the  better  grades,  but  will  be  willing  to  utilize 
the  lower  grades  or  turn  to  Egyptian  cotton  or  Indian 
cotton,  rather  than  curtail  production. 

At  the  prevailing  price  of  cotton  this  represents  an  an- 
nual expenditure  in  this  country  of  between  $175,000,000 
and  $200,000,000. 

M.  Waddington  indicated  that  there  was  no  shortage 
of  cotton  at  the  present  time  in  France,  nor  was  there 
any  individual  financial  obstacles  to  purchases  on  the  part 
of  the  French  manufacturers.  The  problem  is  one  rather 
of  the  re-establishment  of  the  normal  rate  of  exchange. 

The  French  Mission,  indicated  a  welcome  to  invest- 
ments of  American  capital  in  France  textile  enterprises. 

M.  Waddington  spoke  of  his  desire  of  having  France 
receive  American  cotton  on  a  preferential  basis. 

GREAT  BRITAIN. 

From  our  conference  with  the  delegates  from  Great 
Britain,  it  appears,  that  the  British  cotton  industry,  and 
most  other  branches  of  the  textile  industries  are  rapidly 
resuming  normal  production.  Their  requirements  of  raw 
cotton  will  probably  be  about  3,500,000  bales  of  which 
3,000,000  bales  will  be  American  cotton. 

The  British  delegates  stated,  that  their  imports  of  raw 
cotton  would  be  financed  with  the  necessity  of  a  grant  of 
credit  from  America.  It  was  pointed  out,  however,  that 
several  countries  such  as  Poland  and  Czecho-Slovakia,  are 
in  desperate  need  of  raw  cotton  which  can  be  obtained 
by  them  only  with  the  assistance  of  long-term  credits 
from  America. 

ITALY. 

The  Italian  cotton  industry,  which  before  the  war  em- 
ployed 4,600,000  spindles,  is  to  a  large  extent  in  a  posi- 
tion to  resume  operations.  Production  is  somewhat  cur- 


456        THE  INTERNATIONAL  TRADE  CONFERENCE 

tailed  by  the  shortened  hours  of  labor.  Allowing  for  this 
the  estimated  requirements  for  the  current  year  are  re- 
duced from  one  million  bales  to  885,000  bales,  of  which 
700,000  bales,  formerly  came  from  the  United  States, 
while  estimated  requirements  from  the  United  States  this 
year,  are  650,000  bales.  Normal  exports  of  cotton  goods 
are  chiefly  to  the  Levant  and  amount  to  about  25%  of 
the  total  output. 

The  Italian  silk  industry  has  been  interf  erred  with  by 
the  war  and  Chinese  competition.  But,  it  is  the  hope 
that  with  the  restoration  of  more  nearly  normal  condi- 
tions, exports  to  the  United  States  will  increase. 

The  hemp  industry  also  is  in  a  fair  way  to  right  itself 
and  soon  return  to  a  normal  basis. 

In  the  manufacture  of  wool,  Italy  plans  to  emphasize 
competition  in  high  grade  products.  With  respect  to 
these  products  and  high  grade  cotton  fabrics  the  dele- 
gates express  a  hope  that  the  United  States  would  lower 
its  duties  on  Italian  products  in  return  for  similar  con- 
cessions in  Italy. 

The  Italian  delegates  presented  a  statement  concerning 
credits  similar  to  that  offered  by  the  French  delegates, 
namely;  that  while  private  concessions  are  not  sought, 
it  was  hoped,  that  arrangements  could  be  made  between 
the  governments  of  the  United  States  and  Italy,  by  which 
payment  for  raw  cotton  bought  this  year  could  be  de- 
ferred until  exchange  conditions  were  more  favorable. 

BELGIUM. 

No  delegates  familiar  with  the  Belgian  textile  indus- 
tries appeared  for  the  conference  with  the  committee. 
Based  on  the  figures  of  pre-war  consumption. 

PORTUGAL. 

A  representative  of  the  Portuguese,  explained  to  the 
committee,  that  their  cotton  industry  is  now  resuming 
operations  after  an  idleness  due  to  lack  of  orders.  They 
will  need  80,000  bales  of  American  cotton  if  their  indus- 
try operates  at  full  time.  For  the  purchase  of  this  cot- 
ton the  Portuguese  manufacturers  would  like  long-term 
credits  from  America. 

SUMMARY. 

1.  Textile  production  in  Europe  is  rapidly  becoming 
established  on  the  basis  of  reasonable  capacity  operation 


THE  INTERNATIONAL  TRADE  CONFERENCE        457 

within  the  limits  of  shorter  working  hours,  which  have 
somewhat  restricted  output  as  compared  with  pre-war 
production. 

2.  America  being  an  importer  of  all  raw  materials 
used  in  the  Textile  industry,  except  cotton,  we  find  that 
all  delegations  are  interested  almost  solely  in  the  pur- 
chase of  American  cotton,  and  they  have  indicated  no 
interest  in  purchasing  wool,  silk,  flax  or  other  textile 
fibres  in  this  country. 

In  manufactured  textile  products,  Europe  is  fortunate- 
ly able  to  provide  her  own  requirements,  given  the  neces- 
sary raw  materials  and  puts  forth  no  demand  on  the 
American  textile  mills.  American  mills  are  producing  a 
relatively  small  exportable  surplus,  which  surplus,  it  is 
considered  desirable  to  ship  to  those  importing  markets 
which  will  continue  to  be  purchasers  of  our  textile  mer- 
chandise. 

3.  In  order  to  provide  raw  cotton  to  those  of  our  Allies 
whose  exchange  has  suffered  depreciation  excessively  the 
necessity  of  credit  accommodation,  is  emphasized,  so  as 
not  to  handicap  such  Allies  in  competition  with  the  neu- 
trals, and  those  countries  which  are  not  so  far  affected  by 
the  high  cost  to  them  of  the  American  dollar, 
EFFECT  OF  AMERICAN  TEXTILE  INDUSTRY  AND  AMERICAN 

CONSERVATION. 

4.  Our  own  textile  situation  is  sufficiently  acute  with 
the  existing  high  level  of  prices  that  there  is  a  distinct 
danger  to  us  should  overseas  purchases  tend  to  further 
elevate  prices  and  accentuate  further  social  unrest  due 
to  higher  costs  of  necessary  clothing — (we  attach  a  con- 
fidential report  of  approximate  demands  for  cotton  w'th 
available  supplies). 

5.  That,  although  there  appears  a  demand  for  raw 
cotton  in  excess  of  the  available  indicated  supply,  it  must 
be  borne  in  mind  that  much  European  requirements  have 
already  been  contracted  from  this  year's  crop,  with  the 
attendant  enhancement  of  prices  which  has  secured  in 
the  period  of  this  active  buying. 

6.  That  while  depreciated  currency  is  a  handicap  in 
all  countries  which  import  from  the  United  States  for 
their  own  domestic  consumption,  it  has  a  corresponding 
advantage  when  raw  material  or  other  merchandise  is  im- 
ported for  re-export  in  competition  with  the  similar  prod- 
ucts from  the  United  States,  and,  it  is  as  necessary,  in 
the  interest  of  our  foreign  trade  to  stabilize  exchange,  as 
it  is  for  the  foreign  country  to  have  it  stabilized. 


458        THE  INTERNATIONAL  TRADE  CONFERENCE 


RECOMMENDATIONS. 

1.  That,  in  spite  of  the  possibility  of  unequal  distribu- 
tion of  scanty  supplies,  no  government  agency  should  be 
established  in  the  United  States  to  allocate  textile  ma- 
terials, particularly  raw  cotton. 

2.  That,  if  credit  is  granted  to  our  associates  in  the 
war  to  assist  them  in  rehabilitating  their  industries,  and 
stabilizing  exchange,  adequate  provision  should  be  made 
to  prevent  inflation  of  the  credit  currency  of  the  United 
States ;  further  inflation  would  doubtless  occasion  another 
rise  in  prices,  and  aggravate  the  conditions  that  are  al- 
ready so  threatening  to  the  general  welfare  of  the  coun- 
try. 

3.  That,  if  credit  is  granted  as  suggested  above,  ade- 
quate provision  should  be  made  to  guarantee  its  utiliza- 
tion for  specfic  purposes.     The  committee  believes  that  it 
is  to  the  interest  of  the  textile  industries  of  America  as 
well  as  to  the  interest  of  others  that  this  credit  should 
be  utilized  as  some  sort  of  revolving  fund  to  stimulate 
the  increase  of  exports  from  Europe.     The  committee  ap- 
proves the  appended  resolution  adopted  last  week,  at  the 
World  Cotton  Conference  in  New  Orleans,  regarding  the 
method  of  financing  cotton  exports  to  our  Allies. 

4.  That,  inasmuch  as  there  is  a  danger  of  a  general 
scarcity  of  raw  cotton  not  only  this  year,  but  for  several 
years  to  come,  every  cotton  manufacturer  and  consumer 
in  the  world  should  be  urged  to  avoid  waste  and  to  use 
every  practical  means  of  conservation  of  the  material. 
The  Textile  Committee,  furthermore,  strongly  urges  that 
every  effort  should  be  made  to  stimulate  an  increase  in 
the  production  of  raw  cotton  in  this  country  and  abroad. 

5.  That,  consideration  be  given  to  the  possibility  that 
Italy,  France,  Poland,  Czecho-Slovakia  and  possibly  other 
countries  securing  American  capital  investments  in  estab- 
lished textile  enterprises,  which  would  appear  to  offer 
ample    remuneration,    reasonable    safety  and  an  oppor- 
tunity to  assist  in  the  re-establishment  of  the  textile  in- 
dustries of  these  countries  by  providing  dollars  for  the 
purchase  of  raw  materials  here. 

JOHN  R.  MUNN,  Chairman. 


THE  INTERNATIONAL  TRADE  CONFERENCE        459 
COMMITTEES  ON  PERMANENT  ORGANIZATION. 
BELGIUM. 

M.  CANON-LEGRAND. 

M.  VAN  DEN  VEN. 
M.  DE  GROOTE. 

FRANCE. 

All  members  of  the  Mission. 

GREAT  BRITAIN. 

SIR  ARTHUR  SHIRLEY  BENN. 
SIR  JAMES  HOPE  SIMPSON. 
MARSHALL  STEVENS.  M.  P. 
HON.  J.  G.  JENKINS. 
BAILIE  JOHN  KING. 
FRANK  MOORE. 


ITALY. 


B.  ATTOLICO. 
D.  GIDONI. 
V.  MENEGHELLI. 
P.  G.  LAZZERINI. 
G.  FUMMI. 
A.  JACCARINO. 

F.  QUATTRONE. 

G.  GRANATA. 
L.  SOLARI. 
L.  PERERA. 

G.  B.  CECCATO. 
0.  ROSSATI. 
SIG.  OLDRINI. 
SIG.  SERRATI. 
P.  DECICCO. 


AMERICA. 


HARRY  A.  WHEELER,  Chairman; 

Vice-President,  Union  Trust  Co.,  Chicago,  111. 

S.  C.  MEAD,  Vice-Chairman  and   Secretary; 

Secretary,  Merchants'  Association,  New  York  CHv. 

W.  G.  G.  BENWAY,  Assistant  Secretary; 
Chamber  of  Commerce  of  the  United  States,  Chicago, 


460        THE  INTERNATIONAL  TRADE  CONFERENCE 


ARNOLD,  JOHN  J.,  Bank  of  Italy,  Montgomery  &  Clay  Stree  .s,  San 

Francisco,  Cal. 
CARR,  JOHN  J.,  Director,  Consular  Service,  Department  of  State, 

Washington,  D.  C. 
FAHEY,  JOHN  H.,  Boston,  Mass. 
FILENE,  EDWARD  A.,  President,  William  Filene's  Sons  Co.,  Boston 

Mass. 

HERRICK,  MYRON  T.,  Cuyahoga  Building,  Cleveland,  Ohio. 
JOHNSON,  ALBA  B.,  Philadelphia  Pa. 
KENNEDY,  PHILIP  B.,  Director,  Bureau  of  Foreign  and  DomestV 

Commerce,  Department  of  Commerce.  Washington,  D    C. 
MINER,  EDWARD  G.,  President,  The  Pfaulder  Co.,  Rochester,  N.  Y. 
RUBLEE,  GEORGE,  Cornish,  N.  H. 
SEIBERLING,  F.  A.,  President,  Goodyear  Tire  &  Rubber  Co ,  Akron, 

Ohio. 

SKINNER,  ROBERT  P.,  American  Consul  General,  London 
SMITH,  GEORGE  ED.,  President,  Royal  Typewriter  Co.,  New  York 

City. 

AMERICAN  COMMITTEE. 

Minutes  of  the  proceedings  of  a  meeting  of  the  Ameri- 
can Committee  on  Permanent  Organization,  held  at  the 
Traymore  Hotel,  Atlantic  City,  New  Jersey,  on  Monday, 
October  20,  1919,  at  2.15  P.  M.  There  were  present : 

MR.  A.  C.  BEDFORD. 
MR.  JOHN  H.  FAHEY. 
MR.  JOHN  J.  ARNOLD. 
MR.  WILBUR  J.  CARR. 
MR.  EDWARD  A.  FILENE. 
MR.  ALBA  B.  JOHNSON 
MR.  PHILIP  B.  KENNEDY. 
MR.  EDWARD  C.  MINER. 
MR.  GEO.  RUBLEE. 

MR.  F.  A.   SlEBERLING. 

MR.  ROBERT  P.  SKINNER. 

MR.  GEO.  ED.  SMITH. 

MR.  S.  C.  MEAD,  Vice-Chairman  and  Secretary 

MR.  W.  G.  BENWAY,  Assistant  Secretary. 

In  the  absence  of  the  Chairman,  Mr.  Harry  A.  Wheeler, 
the  meeting  was  called  to  order  and  presided  over  by  Mr. 
John  H.  Fahey. 

A  synopsis  showing  the  origin,  construction,  method  of 
operation,  activities  and  rules  and  regulations  of  the  In- 


THE  INTERNATIONAL  TRADE  CONFERENCE        461 

ternational  Congress  of  Chambers  of  Commerce,  were  dis- 
tributed for  the  information  of  the  members  of  the  com- 
mittee. 

Chairman  Fahey  made  a  historical  statement  relative 
to  the  International  Congress.  The  Committee  then  took 
under  consideration  the  following  question:  "Is  some 
form  of  permanent  international  organization  desirable  ?" 
After  discussion,  it  was  moved  by  Mr.  Johnson,  duly  sec- 
onded and  unanimously  carried,  that  some  kind  of  per- 
manent organization  is  desirable  and  necessary. 

The  question  then  considered  was:  "What  countries 
should  be  included  in  such  an  organization  ?"  After  con- 
sideration it  was  moved  by  Mr.  Johnson,  and  duly  sec- 
onded, that  the  five  Allied  nations,  France,  England,  Bel- 
gium, Italy  and  the  United  States  should  be  included.  This 
motion  was  unanimously  adopted.  The  next  question 
considered  was :  "Should  other  Allied  and  neutral  nations 
be  included?"  It  was  moved  by  Mr.  Skinner,  and  duly 
seconded,  that  membership  of  such  an  international  or- 
ganization should  be  comprehensive  in  character  and 
should  include  other  approved  Allied  and  neutral  nations, 
leaving  the  approval  to  the  discretion  of  the  proper  gov- 
erning body  of  the  organization.  After  a  careful  discus- 
sion of  this  action,  it  was  unanimously  adopted.  The 
next  question  considered  was :  "What  should  be  the  basis 
of  representation?"  It  was  moved,  by  Mr.  Bedford,  and 
duly  seconded,  that  it  is  the  view  of  the  committee,  that 
at  the  outset  membership  should  be  confined  to  business 
and  financial  men,  inviting  government  co-operation.  This 
motion  was  carefully  considered  and  discussed,  and  sub- 
sequently, unanimously  adopted.  The  question  then  con- 
sidered was:  "Should  the  International  Congress  of 
Chambers  of  Commerce  be  utilized  as  a  basis  for  such  a 
new  organization  ?"  It  was  the  consensus  of  opinion,  dis- 
closed by  the  discussion,  that  the  organization  should  be 
created  de  novo,  and  that,  if  possible,  the  International 
Congress  of  Chambers  of  Commerce,  should  be  merged 
therein.  The  following  question  was  then  considered: 
"What  Steps  may  properly  be  taken  now  to  start  such 


462        THE  INTERNATIONAL  TRADE  CONFERENCE 

a  new  organization?"  After  discussion,  an  attempt  to 
answer  the  question  was  deferred  until  after  the  con- 
ference with  the  delegates  from  the  other  countries. 

The  Chairman  stated,  that  at  his  last  conference  with 
Mr.  Wheeler,  the  important  topics  discussed  with  Mr. 
Wheeler,  were  about  as  follows : 

(1.)  Any  form  of  organization  should  provide  for  the 
permanent  secretariat  or  bureau  with  resources  and  facil- 
ities for  continuing  research  work. 

(2.)  The  resources  of  the  organization  should  be  suffi- 
cient to  provide  for  committees  on  special  international 
subjects  and  to  make  the  reports  available  to  member 
organizations. 

(3.)  A  board  of  directors,  or  some  governing  body,  is 
necessary  to  direct  the  work  of  committees  and  the  secre- 
tariat, and  to  oversee  the  preparation  of  matter  for  meet- 
ings. 

(4.)  Action  of  the  Conference  in  whatever  form  pro- 
vided for  would  contemplate  presenting  the  agreements 
arrived  at  to  the  legislative  bodies  of  the  various 
countries. 

(5.)  A  study  should  be  made  of  the  League  of  Nations 
organization  for  the  purpose  of  finding  out  to  what  ex- 
tent the  League  of  Nations  would  be  prepared  to  deal 
with  the  decisions  arrived  at  by  the  Conference. 

(6.)  The  permanent  secretariat  should  be  expected  to 
maintain  a  persistent  follow-up  system  to  press  for  action 
in  the  various  countries  the  matters  agreed  upon. 

(7.)  The  machinery  of  the  organization  should  provide 
for  the  presentation  of  reports  and  questions  in  such  a 
way  that  all  the  countries  in  the  membership  would  have 
due  notice  of  contemplated  action  and  would  have  full  op- 
portunity to  be  heard  and  to  register  their  views. 


STATEMENT  OF  PURPOSES  OF  ORANIZATION. 

The  Committee,  by  unanimous  action,  tentatively 
adopted  the  following  statement  of  purpose  of  such  an  in- 
ternational organization. 

'"The  purpose  of  the  organization  is  to  promote  inter- 
national commerce,  to  facilitate  the  commercial  inter- 
course of  nations,  to  secure  harmony  of  action  on  all  in- 


THE  INTERNATIONAL  TRADE  CONFERENCE        463 

ternational  questions  involving  commerce  and  industry, 
and  to  promote  peace,  progress  and  cordial  relations  be- 
tween the  countries  and  their  citizens  by  the  co-opera- 
tion of  business  men  and  their  associations  devoted  to  the 
development  of  commerce  and  industry." 

The  meeting  thereupon  adjourned  until  Tuesday,  Octo- 
ber 21,  at  10  A.  M.,  for  a  joint  session  with  the  repre- 
sentatives on  the  committee  from  Belgium,  France,  Great 
Britain  and  Italy. 

W.  G.  G.  BENWAY,  Assistant  Secretary, 


JOINT  COMMITTEE. 

Minutes  of  the  proceedings  of  a  meeting  of  the  Joint 
Committee  on  Permanent  Organization,  held  at  the  Tray- 
more  Hotel,  Atlantic  City,  New  Jersey,  on  Tuesday,  Octo- 
ber 21,  1919,  at  10  A.  M. 

There  were  present: 

Repreenting  the  United  States. 

JOHN  EL  FAHEY,  Chairman. 

S.  C.  MEAD,  Vice  Chairman  and  Secretary. 

W.  G.  G.  BENWAY,  Assistart  Secretary. 

JOHN  J.  ARNOLD. 

EDWARD  A.  FILENE. 

WILBUR  J.  CARR. 

ALBA  B.  JOHNSON. 

PHILIP  B.  KENNEDY. 

EDWARD  G.  MINER. 

GEORGE  RUBLEE. 

ROBERT  P.  SKINNER. 

GEORGE  ED.  SMITH. 

Representing  Belgium. 

M.  CANON-LEGRAND. 

PROF.  PAUL  VAN  DEN  VEN. 

Representing  France. 
M.  TIRMAN. 

M.    JULIEN    POTIN. 
M.  GODET. 

M.  EDOUARD  DOLLEANS. 


464        THE  INTERNATIONAL  TRADE  CONFERENCE 

Representing  Great  Britain. 

SIR  ARTHUR  SHIRLEY  BENN. 
SIR  JAMES  HOPE  SIMPSON. 
MR.  FRANK  MOOBE. 
MR.  GEORGE  BERKES,  Secretary. 

Representing  Italy. 

COMMANDER  DOMENICO  GIDONI. 
COMMANDER  PIETRO  GIOVANNI  LAZZERINI. 
CHEVALIER  GIOVANNI  FUMMI. 
COMMANDER  DR.  AUGUSTO  JACCARINO. 
Together  with  MESSRS.  SOLARI,  SCARAMELLI  DE  Cicco 
and  BONASCHI  as  advisors. 

The  meeting  was  called  to  order  by  Mr.  Fahey,  acting 
chairman,  of  the  American  Committee,  who  reported  that 
because  of  duties  in  connection  with  the  Industrial  Con- 
ference, now  in  session  in  Washington,  Mr.  Harry  A. 
Wheeler,  the  Chairman  of  the  Committee,  was  unable  to 
be  present.  Mr.  Fahey  made  a  preliminary  statement 
regarding  the  purposes  for  which  the  Committee  was 
created,  and  the  desirability  and  necessity  for  the  estab- 
lishment of  some  appropriate  type  of  permanent  inter- 
national commercial  organization  as  the  result  of  the  Con- 
ference now  taking  place. 

The  Chairman's  statement  was  followed  by  remarks 
made  by  M.  Cannon-LeGrand,  relative  to  the  importance 
of  this  matter.  M.  LeGrand  inquired  whether  or  not 
the  American  Committee  had  drafted  a  proposed  concrete 
plan  in  any  degree  of  detail. 

The  Chairman  replied  that  the  American  Committee 
had  been  considering  principles  only,  and  that  they  had 
purposely  refrained  from  drawing  up  a  detailed  plan  of 
application  of  such  principles  in  order  that  there  might 
be  full  opportunity  for  free  interchange  of  ideas  in  the 
joint  committee  meeting  before  the  formation  of  detailed 
plans.  The  Chairman  thereupon  outlined  the  seven  prin- 
ciples or  topics  considered  by  the  American  Committee, 
and  set  forth  in  detail  in  the  minutes  of  the  meeting  of 
the  American  Committee,  held  on  October  20th,  1919. 


THE  INTERNATIONAL  TRADE  CONFERENCE        465 

M.  LeGrand  stated  that  the  Belgian,  French  and  Ital- 
ian Committees  had  discussed  the  subjects  of  permanent 
organization,  and  joined  in  suggesting  for  consideration 
the  following  draft  of  a  basis  for  organization: 

"This  organization  is  not  to  be  a  Government  Organi- 
zation. 

I.  AIMS: 

(a)  To  create  an  information  bureau,  which  will  cen- 
tralize all  economic  data:    Respective  needs,  present  pro- 
duction and  future  possibilities  of  each  country. 

(b)  To  act  as  an  organ  of  independent  coordination, 
which    will    suggest    trade    regulations    and    legislative 
measures,  that  will  facilitate  and  encourage  the  develop- 
ment of  economic  intercourse. 

(c)  To  inform  public   opinion   through   the   views  of 
technical  experts  and  business  men. 

(d)  To  put  at  the  disposal  of  all  official  organizations 
the  whole  documentation  prepared  by  those  experts  and 
business  men. 

II.  ORGANIZATION: 

(a)  This  organization  will  consist  of  the  following  ele- 
ments : 

1.  An  international  bureau  will  be  located  at  the  seat 
of  the  organization,  and  will  consist  of  two  delegates 
from  each  nation,  plus  two  sub-delegates,  who  will  col- 
laborate with  technical  assistants. 

2.  There  will  be  a  corresponding  National  Bureau  in 
each  country,  which  will  be  in  constant  relations  with  the 
International  Bureau. 

(b)  This  organization  may  include  all  countries  that 
are  members  of  the  League  of  Nations,  but  subject  to 
election. 

(c)  To  each  country  will  be  left  the  designation  of  its 
own  representatives,  so  that  the  representatives  will  actu- 
ally reflect  the  economic  forces  at  work  in  their  respec- 
tive country. 

(d)  A  general  meeting  will  take  place  every  two  years 
in  one  of  the  countries  belonging  to  this  Association.  The 
views  exchanged  there  will  permit  the  representatives  of 
the  various  countries  to  compare  experiences  and  dis- 
cuss reforms  that  may  be  in  order. 


466        THE  INTERNATIONAL  TRADE  CONFERENCE 

In  case  of  emergency,  the  Bureau  may  summon  a  meet- 
ing by  giving  three  or  four  months  notice. 

Eventually,  votes  may  be  taken  by  post  and  resolution 
taken  if  two-third  members  vote  for. 

The  Bureau  may  always,  if  it  finds  it  useful,  call  for  a 
meeting  of  specialist  members. 

III.  EXPENSES. 

The  expenses  of  the  International  Bureau  will  be  borne 
by  each  Nation  in  the  same  proportion  as  in  the  Inter- 
national Postal  Bureau  of  Berne. 

IV.  SEAT  OF  ORGANIZATION : 

It  is  desired  that  the  seats  of  the  permanent  organiza- 
tion be  located  in  (to  be  determined). 

A  joint  Committee  will  be  charged  to  prepare  a  com- 
plete plan  of  organization  to  be  submitted  to  a  special 
Congress  next  year,  to  which  the  actual  five  Nations  rep- 
resented in  Atlantic  City  will  send  invitations." 

The  items  contained  in  this  draft  were  then  discussed 
seriatim : 

After  a  very  frank  and  free  discussion  and  considera- 
tion, it  was  the  consensus  of  opinion  that  membership  in 
the  League  of  Nations  should  merely  determine  eligibility 
for  membership  in  the  new  organization: 

That  the  initiation  and  perfection  of  the  organization 
should  rest  in  the  five  countries  represented  in  this  gath- 
ering : 

That  the  perfection  of  organization  in  each  country 
should  be  left  to  that  country,  because  of  the  difference 
in  conditions  in  the  various  countries : 

That  it  is  preferable  that  the  regular  meetings  should 
be  biennial,  and  that  there  be  provision  for  calling  of 
special  meetings  and  for  some  form  of  referendum  system 
to  be  available  in  the  interim  between  meetings : 

That,  there  should  be  a  preliminary  organization 
effected  at  this  gathering  to  formulate  detailed  plans  of 
permanent  organization  for  presentation  at  a  first  meet- 
ing to  be  called  by  the  Committee  and  held  in  1920 : 

That,  each  country  should  finance  its  own  Bureau  and 


THE  INTERNATIONAL  TRADE  CONFERENCE        467 

proportionally,  contribute  to  the  financial  support  of  the 
International  Bureau,  either  upon  the  basis  of  population, 
or  in  the  ratio  in  which  support  is  given  to  the  Interna- 
tional Postal  Union,  or  upon  some  other  appropriate 
basis ; 

That,  provisions  should  be  made  for  invitation  to  other 
selected  nations  to  participate  in  the  first  organization 
meeting  : 

The  subject  of  compensation  of  executive  officers  was 
discussed,  and  it  seemed  to  be  the  consensus  of  opinion, 
that  the  administrative  officers  or  bureau  heads,  who 
would  be  permanently  engaged  in  the  International  Bu- 
reau work,  should  be  adequately  compensated,  but  that 
the  executive  officers,  such  as  president  or  chairman, 
should  not  receive  compensation. 

Discussion  also  ensued  in  reference  to  the  seat  of  the 
International  Bureau  of  the  permanent  organization.  No 
conclusion  on  this  matter  was  reached. 

It  was  moved  by  M.  Tirman,  duly  seconded  and  unani- 
mously carried,  that  there  be  a  sub-committee  of  this 
Committee,  consisting  of  two  of  the  representatives  from 
each  of  the  five  countries,  to  which  Committee  shall  be 
referred  the  principles  above  set  forth,  and  which  Com- 
mittee, in  the  light  of  the  discussion  at  this  meeting,  shall 
prepare  a  report  on  permanent  organization,  based  upon 
the  principles  set  forth  above,  and  that  the  report  thus 
to  be  prepared  be  presented  to  the  general  Conference, 
between  the  Committee  on  Permanent  Organization,  and 
all  other  Committees  of  the  Convention  to  be  held  this 
evening. 

The  members  representative  of  the  respective  countries 
announce  the  selections  for  membership  in  the  sub-com- 
mittee, to  prepare  the  report : 

GREAT  BRITAIN. 

SIR  ARTHUR  SHIRLEY  BENN. 
MR.  FRANK  MOORE. 


468        THE  INTERNATIONAL  TRADE  CONFERENCE 

FRANCE. 

M.   TlRMAN. 

M.  EDOUARD  DOLLEANS. 

BELGIUM. 

M.  CANON-LEGRAND. 

PROF.  VAN  DEN  VEN. 

ITALY. 

CHEVALIER  FUMMI. 
COMMANDER  JACCARINO. 

UNITED  STATES. 

JOHN  H.  FAHEY. 

JOHN  J.  ARNOLD. 

S.  C.  MEAD,  Secretary. 

MEETING  OF  THE  COMMITTEE  ON  PERMANENT 
ORGANIZATION,  OCTOBER  21. 

The  meeting  was  called  to  order,  at  8:30  o'clock,  p.  m., 
Mr.  Alfred  Bedford  presiding. 

The  Chairman:  Gentlemen,  you  see  from  the  lists  of 
committees  that  ex-President  Harry  A.  Wheeler  is  the 
Chairman  of  the  Committee  on  Permanent  Organization. 
You  all  know  that  Mr.  Wheeler  is  detained  in  Washing- 
ton, on  account  of  his  very  important  duties  there,  in 
connection  with  the  Conference  now  going  on,  he  being 
the  chairman  of  the  group  representing  the  manufac- 
turers of  the  United  States,  called  by  the  President.  In 
Mr.  Wheeler's  absence,  I  asked  Mr.  Fahey,  if  he  would 
act  as  chairman  of  the  Committee.  The  Committee  has 
been  in  session  several  times  to  give  this  matter  most 
careful  consideration,  and  I  now  ask  Mr.  Fahey  to  re- 
port to  the  Committee,  and  also  to  act  as  chairman  of  this 
meeting. 

Mr.  Fahey:  Gentlemen,  as  Mr.  Bedford  has  explained, 
your  Committee  on  Permanent  Organization,  consists  of 


THE  INTERNATIONAL  TRADE  CONFERENCE        469 

a  certain  number  of  members  appointed  to  represent  the 
United  States,  and  some  three  to  five  members  represnt- 
ing  each  of  the  foreign  missions  has  been  giving  this  mat- 
ter consideration,  and  this  evening,  is  prepared  to  pre- 
sent to  you  a  tentative  report  as  the  result  of  their  de- 
liberations. 

The  question  of  international  organization  of  business 
men  and  financial  interests  of  the  world,  is  obviously  ex- 
citing more  attention  and  receiving  more  consideration 
today  than  ever  before  in  our  history,  and  for  evident 
reasons.  The  war  has  resulted  in  bringing  us  closer  to- 
gether in  many  respects.  It  is  developing  problems  that 
we  never  before  anticipated.  Out  of  it  is  growing  some 
new  relations  of  the  nations,  which  must,  in  the  natural 
order  of  things,  have  to  do  with  the  development  of  the 
economic  welfare  of  the  several  countries  of  the  world 
represented  in  that  league. 

Beginning  with  something  like  a  dozen  years  ago,  sev- 
enteen years  ago,  to  be  exact,  there  was  in  existence  the 
International  Congress  of  Commercial  and  Industrial  As- 
sociations developed  in  Europe.  It  progressed  rapidly  for 
some  years  without  very  much  attention  from  the  busi- 
ness men  and  business  organizations  of  the  United  States. 
Its  inception  came  from  that  splendid  little  country,  Bel- 
gium. The  man  on  whom  the  International  Organiza- 
tion of  Businessmen,  was  most  dependent,  is  one  of  the 
distinguished  members  of  the  Belgium  Delegation,  whom 
we  have  with  us  on  the  occasion  of  this  International  Con- 
ference, I  refer  to  M.  Canon  Legrand,  who  for  15  or  16 
years,  carried  forward  the  lamp  of  progress  so  far  as 
international  commercial  organization  is  concerned.  Other 
economic  interests  have  long  seen  the  necessity  for  effi- 
cient organization,  and  have  been  ever  willing  to  supply 
the  necessary  resources,  its  usual  payment  for  business- 
men, those  most  able  to  perfect  the  best  kind  of  organi- 
zation to  fail  to  support  their  organization  internationally 
as  they  should.  The  international  courts  of  Chamber  of 
Commerce  in  the  last  six  years  of  its  existence  showed  re- 
markable progress.  The  Congress  at  London  in  1910  was 


470        THE  INTERNATIONAL  TRADE  CONFERENCE 

most  successful.  It  was  followed  by  the  Congress  at 
Boston  when  we  persuaded  them  to  come  to  this  country 
in  1912,  and  finally,  in  1914,  it  reached  the  peak  of  its 
achievements  at  the  splendid  Congress  held  in  Paris  in 
that  year  attended  by  something  like  1,800  or  around 
2,000  delegates.  If  my  memory  serves  me  rightly  that 
Congress  was  held  under  the  auspices  of  the  French  Gov- 
ernment and  was  liberally  supported  and  encouraged  by 
that  Government.  It  was  held  under  the  most  auspicious 
circumstances  and  was  most  successful  in  its  results.  On 
that  occasion  also  much  attention  was  given  to  the  idea 
of  better  organization  and  a  further  development  of  this 
international  chamber,  but  unfortunately,  the  interven- 
tion of  war  prevented  the  carrying  out  of  those  plans. 
This  last  spring  the  members  of  the  permanent  commit- 
tee, or  what  we  know  in  this  country  as  a  board  of  di- 
rectors of  the  International  Congress  met  in  Paris  to 
survey  the  situation  and  to  consider  what  steps  should 
now  be  taken  toward  its  further  reorganization  and  de- 
velopment; and  it  was  agreed  out  of  the  discussions  at 
that  time  that  as  a  first  step  the  leading  commercial  na- 
tions of  the  world  which  had  fought  together  in  this  late 
great  war  should  first  meet  and  clear  their  ideas  on  this 
as  well  as  other  subjects.  The  result  is  this  splendid  con- 
ference in  which  we  are  now  participating,  and  one  in- 
cident of  it  has  been  this  discussion  of  permanent  organi- 
zation along  broader  lines. 

The  committees  appointed  to  represent  the  several  na- 
tions began  their  sessions  and  the  exchange  of  ideas  and 
soon  found  that  our  friends  from  Europe  have  been  think- 
ing along  rather  more  advanced  lines,  or  in  more  definite 
form  than  we  have ;  and  so  today  we  were  able  to  arrive 
at  an  agreement  as  to  a  tentative  plan  and  method.  It 
should  interest  you  to  know  that  first  of  all  our  minds 
were  in  absolute  accord  as  to  the  nature  of  the  interna- 
tional organization  and  the  fact  that  advantage  to  be 
taken  of  this  meeting  to  take  the  necessary  steps  to  per- 
fect it,  and  so,  as  a  result  of  these  transactions  I  am 
privileged  to  present,  on  behalf  of  the  committee,for  your 


THE  INTERNATIONAL  TRADE  CONFERENCE        471 

consideration  and  discussion  this  unanimous  report  of 
the  committee: 


REPORT  OF  COMMITTEE. 

Your  Committee  on  Permanent  Organization  begs  to 
report  that  it  has  given  careful  consideration  to  the  sub- 
ject referred  to  it  and,  by  unanimous  action,  joins  in 
making  the  following  recommendations: 

I.  That  the  need  of  more  comprehensive  organization 
of  the  commercial  and  financial  interests  of  the  various 
nations  is  imperative  and  that  the  present  International 
Trade  Conference    should    serve  as    the    foundation  on 
which  to  construct  a  permanent  organization. 

II.  Your  committee  has  adopted  and  recommends  th^ 
following  statement  of  general  purpose  of  the  organiza- 
tion: 

"The  purpose  of  the  organization  is  to  promote  inter- 
national commerce,  to  facilitate  the  commercial  inter- 
course of  nations,  to  secure  harmony  of  action  on  all  in- 
ternational questions  involving  commerce  and  industry, 
and  to  promote  peace,  progress  and  cordial  relations  be- 
tween the  countries  and  their  citizens  by  the  cooperation 
of  business  men  and  their  associations  devoted  to  the  de- 
velopment of  commerce  and  industry." 

III.  Your  Committee  believes  the  specific  aims  of  the 
organization  should  be : 

(a)  To  create  a  permanent  international  headquar- 
ters which  will  centralize  all  data  concerning  economic 
subjects  and  social  conditions;  the  facts  relating  to  the 
respective  needs,  present  productions  and  future  possi- 
bilities of  each  country. 

(6)  To  act  as  an  instrument  of  coordination  which  will 
suggest  trade  regulations  and  legislative  measures  to 
facilitate  and  encourage  the  development  of  economic  in- 
tercourse. 

(c)  To  inform  public  opinion  through  the  publication 
of  facts  concerning  business  conditions  and  through  dis- 
semination of  the  views  of  technical  experts  and  business 
men. 

(d)  To  put  at  the  disposal  of  all  official  organizations 
the  reports  and  conclusions  prepared  by  those  experts 
and  business  men. 

IV.  Organization:  Your  Committee  presents  the  fo!- 


472        THE  INTERNATIONAL  TRADE  CONFERENCE 

lowing  tentative  suggestions  as  the  basis  for  a  plan  of 
organization : 

(1)  A  board  of  directors  of  two  members  selected  by 
each  nation.    In  the  event  of  the  inability  of  such  direc- 
tors to  attend  the  meetings  they  shall  be  represented  by 
an  equal  number  of  alternates. 

The  board  of  directors  shall  have  general  charge  of 
the  business  of  the  organization,  supervision  of  its  poli- 
cies and  direction  of  the  activities  of  the  international 
headquarters  and  its  staff.  It  shall  determine  the  ques- 
tions to  be  placed  upon  the  agents  for  all  meetings. 

(2)  An  international  headquarters  shall  be  located  at 
the  seat  of  the  organization.    One  representative  of  each 
member  nation  shall  be  attached  to  the  international  head- 
quarters and  shall  be  resident  at  the  seat  of  organiza- 
tion and  may  have  such  necessary  technical  assistants  as 
the  board  of  directors  may  determine. 

(Let  me  divert  a  moment  there  to  explain  that  the  pur- 
pose is  a  permanent  international  bureau  at  which  each 
nation  shall  have  a  permanent  resident  representative 
or  general  secretary;  that  these  secretaries  may  have 
such  technical  assistance  as  may  be  recommended  by  their 
organization  and  approved  by  the  board  of  directors, 
thus  providing  continuous  machinery,  always  available 
to  the  business  interests  of  the  nation.) 

(3)  There  shall  be  a  corresponding  national  bureau  in 
each  country,  which  will  be  in  constant  relation  with  the 
international  headquarters. 

(b)  This  organization  may  include  all  countries  that 
are  members  of  the  League  of  Nations,  but  subject  to 
election  by  the  board  of  directors. 

(c)  The  membership  of  the  organization  shall  consist 
of  chambers    of    commerce,    commercial    organizations, 
banking  associations,  and  similar  associations,  the  votes 
of  which  shall  determine  all  questions  of  poilcy.    Firms, 
corporations  and    individual    bankers  or   business    men 
shall  be  eligible  to  admission  as  associate  members  by 
vote  of  the  board  of  directors  and  under  regulations  to  be 
prescribed   by  the   directors.     Such   associate   members 
shall  be  entitled  to  receive  the  reports  and  bulletins  of  the 
organization  and  shall  be  privileged  to  attend  meetings. 

(d)  In  any  nation  having  a  national  board  or  organi- 
zation of  its  commercial  interests  the  members  of  the 
board  of  directors  shall  be  chosen  by  that  organization. 
In  countries  where  such  national  board  or  organization 
does  not  exist  the  plan  of  permanent  organization  to  be 


THE  INTERNATIONAL  TRADE  CONFERENCE        473 

later  prepared  shall  recommend  some  equitable  method 
for  choice  of  directors. 

(To  explain :  Your  Committee,  as  it  discussed  the  details 
of  this  plan  found,  of  course,  that  it  was  quite  impossible 
to  evolve  in  detail  the  type  of  organization  finally  neces- 
sary. There  are  great  differences  between  the  organiza- 
tions in  the  various  countries.  Some,  of  them  have  na- 
tional functions  of  their  organizations  as  we  have  in  our 
Chamber  of  Commerce  of  the  United  States ;  others  have 
smaller  and  more  concentrated  boards.  In  some  coun- 
tries the  organizations  of  business  men  are  partly  official 
and  partly  private.  The  desire  was  that  the  selections  of 
members  of  the  board  of  directors,  or  governing  body  of 
the  International  should  be  chosen  by  the  proper  repre- 
sentative national  board,  if  one  existed,  as  being  a  more 
representative  choice  and  providing  a  more  convenient 
way  of  selection;  but  it  was  recognized  that  that  ma- 
chinery was  not  available  in  all  countries.  It  is  impos- 
sible at  the  moment  to  say  what  method  may  well  be  pur- 
sued for  the  selection  of  directors  in  countries  having  no 
national  organization,  and  so  it  was  agreed  in  the  com- 
mittee that  that  was  a  detail  that  might  well  be  left  for 
your  committee  on  organization,  as  provided  for,  to  work 
out  in  some  circumstances.) 

(e)  The  regular  meetings  of  the  general  membership 
of  the  organization  shall  be  held  at  intervals  of  two 
years,  except  that  provision  shall  be  made  for  the  calling 
of  special  meetings  when  necessary.  At  such  interna- 
tional conferences  each  organization  represented  in  the 
membership  shall  be  entitled  to  send  not  more  than  five 
delegates,  who  shall  have  the  privilege  of  discussing  all 
questions  presented  to  the  Congress. 

(The  view  was  held  by  some  that  it  ought  not  to  be  more 
than  two  or  three,  on  the  ground  that  the  Congress  would 
otherwise  become  unwieldy  to  control.  The  view  was 
that  in  a  great  international  meeting  of  this  sort  it  was 
wise  to  have  various  business  interests  represented,  not 
merely  manufacturing  and  commerce,  foreign  commerce, 
let  us  say,  but  that  every  type  of  business  should  have 
representation,  or  opportunity  for  representation.  But 
since  that  was  a  detail  calling  for  further  consideration 
we  agreed  that  the  wording  might  well  be:  "Not  more 
than  five  delegates,"  leaving  the  way  open  for  further 
recommendation  by  a  committee  which  would  be  able  to 
give  further  time  to  the  subject.) 

(/)  In  taking  a  vote  at  the  Congress  each  delegate 
shall  be  entitled  to  one  vote.  The  vote  shall  be  taken  in 


474        THE  INTERNATIONAL  TRADE  CONFERENCE 

the  first  instance  by  a  show  of  hands  and  the  questions 
shall  be  decided  by  a  majority  of  the  votes  recorded;  pro- 
vided, however,  that  delegates  representing  any  two  coun- 
tries may  ask  for  a  vote  by  nations,  in  which  case  any 
decision  previously  recorded  shall  be  final  if  the  resolu- 
tion proposed  by  the  majority  of  the  delegates  is  ratified 
by  a  majority  of  the  countries. 

(The  question  of  voting  in  such  a  way  as  to  protect  the 
interests  of  all  countries  and  leave  the  way  open  to  no 
injustice  is  not  an  easy  one  to  adjust;  because  of  varying 
conditions  it  is  obviously  wise  that  the  views  of  such  a 
great  international  gathering  should  be  taken  as  promptly 
as  possible;  and  yet,  if  it  be  by  a  show  of  hands  or  vive 
voce  vote,  some  provision  must  be  given  for  the  safe- 
guarding of  interests  of  nations;  and  votes  would  not, 
after  all,  be  useful  or  of  advantage  unless  they  repre- 
sented a  general  concensus  of  opinion.  Therefore,  our 
committee  reported  this,  which  you  will  understand,  after 
all,  is  a  tentative  suggestion  for  deliberations  on  the  sub- 
ject may  result  in  an  even  better  plan,  but  that  particular 
difficulty  must  somehow  be  met,  as  you  will  realize.) 

(g)  In  all  countries  having  a  national  board  or  organi- 
zation of  the  commercial  and  financial  interests,  the  ap- 
plications for  membership  in  the  international  organiza- 
tion shall  be  passed  upon  and  approved  by  the  national 
board  of  organization. 

(The  purpose  01  that,  gentlemen,  was  this :  If  no  check 
of  that  sort  is  provided  the  way  is  open  for  all  kinds  of 
organizations,  great  and  small,  whether  their  purpose  be 
really  serious  or  not,  to  have  a  place  in  your  international 
organization.  Certainly  its  force  and  strength  will  de- 
pend upon  its  character  and  its  hands  could  well  be  weak- 
ened if  its  membership  were  not  guarded  with  some  care. 
At  least  the  opinion  of  the  committee  was  that  if  the  duly 
constituted  board  of  organization  of  the  country  was 
ready  to  recommend  any  applicant  for  membership  that 
would  assuredly  furnish  a  safe  basis  for  admission. 
Otherwise  there  might  be  some  difficulty,  as  there  has 
been  on  occasions  in  the  past  in  the  International,  where 
men  who  were  going  abroad  and  were  merely  tourists 
and  visitors  attended  sessions  and  added  nothing  to  the 
strength  of  the  deliberations  or  the  character  of  the 
gathering,  and  that  needs  to  be  safeguarded.) 

(h)  The  Committee  on  Permanent  Organization  shall 
consider,  and,  if  possible,  report  as  a  part  of  a  permanent 
plan  of  organization  some  practical  method  of  securing 
the  opinions  of  the  members  of  the  organization  on  im- 


THE  INTERNATIONAL  TRADE  CONFERENCE        475 

portant  international  questions  in  the  intervals  between 
the  meetings  of  the  Congress. 

(That  is  a  subject  that  has  been  given  attention  for 
some  years  by  those  who  have  been  giving  thought  to  this 
subject.  You  know  the  success  with  which  we  have  de- 
veloped the  referendum  system  for  the  recording  of  votes 
in  our  organization  in  this  country.  It  was  felt  that 
consideration  of  the  project  and  further  study  than  it 
would  be  possible  to  give  in  hurried  meetings  now  might 
result  in  the  development  of  some  scheme,  the  adoption 
of  which  would  make  possible  securing  the  business  opin- 
ion of  the  world  between  the  two-year  periods  of  inter- 
national meetings.) 

(i)  The  Committee  on  Permanent  Organization  shall 
also  report  a  recommendation  as  to  the  location  of  the 
permanent  headquarters. 

(On  that  article  there  was  some  discussion  in  our  com- 
mittee, the  view  being  held  on  the  one  hand  that  probably 
it  would  be  wise  to  have  the  permanent  headquarters  of 
this  organization  in  close  proximity  to  the  headquarters 
of  the  organization  of  the  League  of  Nations,  perhaps  in 
the  same  city.  However,  that  headquarters  is  not  per- 
manently fixed.  There  was  the  view  in  your  committee 
that  that  subject  also  should  be  given  further  consider- 
ation and  should  be  a  matter  of  later  report.) 

V.  Temporary  Organization:  It  is  the  recommenda- 
tion of  your  Committee  tnat  the  nations  represented  in 
this  Conference,  namely,  Great  Britain,  France,  Belgium, 
Italy  and  the  United  States,  shall  constitute  a  temporary 
organization,  and  that  a  joint  committee  be  appointed 
representative  of  these  nations  to  prepare  a  plan  for  per- 
manent organization;  that  as  soon  as  practicable  a  meet- 
ing be  called  by  the  Committee  on  Organization  of  the 
representatives  of  such  nations  as  they  may  unanimously 
determine  to  invite,  at  which  meeting  the  plan  for  perma- 
nent organization  shall  be  presented  for  adoption  in  final 
form. 

(Now  a  word  on  that:  There  should  be  a  permanent 
organization  to  take  these  suggestions  and  work  them 
out  into  a  plan  for  permanent  organization;  that  the 
members  of  the  present  International  Trade  Conference 
constitute  themselves  as  the  foundation  of  the  interna- 
tional organization,  really  temporary  organization,  and 
when  ready  they  shall  invite  other  nations  to  join  with 
them  in  a  meeting  to  discuss  a  permanent  plan,  accept  it 
and  to  begin  the  operations  of  the  permanent  organiza- 
tion.) 


476        THE  INTERNATIONAL  TRADE  CONFERENCE 

Your  Committee  recommends  that  the  delegates  in  this 
Conference  from  each  of  the  five  countries  shall  select 
immediately  two  members  of  a  joint  committee  on  per- 
manent organization  to  present  a  complete  plan  of  or- 
ganization for  submission  as  provided  above. 

Respectfully  submitted, 

United  States : 

JOHN  J.  ARNOLD. 
WILBUR  J.  CARR. 
EDWARD  A.  FILENE. 
MYRON  T.  HERRICK. 
ALBA  B.  JOHNSON. 
PHILIP  B.  KENNEDY. 
EDWARD  G.  MINER. 
GEORGE  RUBLES. 

F.  A.  SEIBERLING. 
ROBERT  P.  SKINNER. 
GEORGE  ED  SMITH. 
JOHN  H.  FAHEY. 

S.  C.  MEAD. 
Belgium : 

M.  CANNON-LEGRAND. 

M.  VAN  DEN  YEN. 

M.  DE  GROOTE. 
France : 

M.  TIRMAN. 

M.  JULIAN  POTIN. 

M.  GODET. 

M.  DOLLEANS. 

Great  Britain : 

SIR  ARTHUR  SHIRLEY  BENN. 

SIR  JAMES  HOPE  SIMPSON. 

MARSHALL  STEVENS,  M.  P. 

BAILIE  JOHN  KING. 

FRANK  MOORE. 
Italy: 

B.  ATTOLICO. 

D.  GIDONI. 

V.  MENEGHELLI. 

P.  G.  LAZZERINI. 

G.  FUMMI. 

A.  JACCARINO. 
SIG.  OLDRINI. 
P.  DE  CIGGO. 


THE  INTERNATIONAL  TRADE  CONFERENCE        477 

F.  QUATTRONE. 

G.  GRANATA. 
L.  SOLARI. 
L.  PERERA. 

G.  B.  CECCATO. 
0.  ROSSATI. 
SIG.  SERRATI. 

Gentlemen,  that  is  the  report  of  your  committee  for 
such  consideration  and  discussion  as  you  wish  to  devote 
to  it.  Let  me  add  in  conclusion  that  the  one  fundamental 
thing  which  members  of  your  committee  are  impressed 
with  is  this:  That  with  the  present  needs  of  the  world 
the  time  is  now,  and  the  opportunity  is  now,  for  us  to 
take  progressive  steps  in  this  direction.  The  very  fact 
that  you  are  gathered  here  to  deal  with  present-day  prob- 
lems is  sufficient  evidence  of  the  fact  that  you  are  men 
of  action.  As  business  men  we  constantly  hold  ourselves 
responsible  for  action  when  the  opportunity  is  ripe,  when 
we  are  prepared  for  action;  and  so  your  committee  pre- 
sents this  plan  with  apologies  for  the  fact  that  we  recog- 
nize it  as  incomplete  in  many  directions ;  that  it  calls  for 
refinement  and  for  development,  but  we  believe  that  if  wo 
may  soon  make  a  beginning  while  our  guests  from 
Europe  are  still  in  this  country  that  we  can  take  further 
steps  toward  its  evolution  before  they  leave  and  that 
within  a  short  time  we  will  be  prepared  to  call  others  to 
join  with  us  and  to  take  steps  to  make  this  a  real,  living 
aggressive  and  useful  thing. 

Perhaps  members  of  some  of  the  delegations  from 
abroad  have  some  ideas  with  reference  to  this  subject 
which  they  would  like  to  present  to  you  and  likewise  that 
there  may  be  some  members  of  our  own  committees  who 
would  be  interested  to  ask  questions  or  say  a  word  on  the 
subject,  and  it  would  be  my  pleasure  to  recognize  any  of 
you  who  are  prepared  to  say  a  word.  Perhaps  it  might  be 
in  order — indeed  I  think  it  would  be  most  fitting — that 
the  particular  man  who  has  contributed  most  in  this  di- 
rection and  whom  we  must  all  recognize,  should  say  a 
word  to  us  on  this  subject.  The  business  men  of  every 


478        THE  INTERNATIONAL  TRADE  CONFERENCE 

country  in  the  world  are  under  the  greatest  obligations 
to  M.  Canon-Legrand. 


REMARKS  OF  M.  CANON-LEGRAND. 

Mr.  Chairman  and  Gentlemen:  Excuse  me  if  I  cannot 
speak  English  as  well  as  I  could  wish  in  order  to  thank 
you  for  the  good  feelings  you  have  just  expressed  to- 
ward me.  I  want  expressly  to  thank  Mr.  Fahey  for  the 
good  words  he  said  of  me  and  to  express  our  feelings  of 
good  will  toward  Mr.  Wheeler,  who  is  absent  for  the  mo- 
ment and  whom  I  had  occasion  to  know  seven  years  ago. 

As  Mr.  Fahey  has  told  you,  the  work  of  the  Interna- 
tional Congress  of  Chambers  of  Commerce  was  initiated 
in  Belgium  about  14  years  ago.  It  was  in  Liege,  in  1905, 
that  for  the  first  time  we  in  Belgium  had  the  idea  to  con- 
voke the  members  of  the  Chambers  of  Commerce  of  the 
Netherlands  and  of  the  world,  if  possible.  After  this 
meeting  in  Liege,  and  the  following  year  we  had  our  sec- 
ond meeting  of  Chambers  of  Commerce  in  Milan  and 
there  we  had  the  pleasure  of  seeing  about  300  members 
in  attendance.  Two  years  later  we  went  to  Bohemia, 
and  there  the  attendance  was  still  greater,  being  about 
500.  Two  years  later  we  were  in  London  where  our 
Congress  was  attended  by  about  600  members ;  and  it  was 
in  London  for  the  first  time  that  we  had  the  pleasure  of 
meeting  what  I  may  call  our  friends  of  America.  I  re- 
member in  London  Mr.  Filene  came  with  some  business 
friends  to  invite  the  Congress  to  hold  its  next  session  in 
America,  in  Boston.  Of  course  we  accepted  that  in- 
vitation and  two  years  later  we  were  in  Boston.  It  is  a 
great  pleasure  for  me  to  recall  the  reception  given  us 
when  we  landed  in  your  country  seven  years  ago.  Your 
reception  of  us  was  so  great,,  so  large,  so  sympathetic, 
that  it  has  always  lingered  with  us  and  always  will.  We 
were  marvelously  received  and  after  that  reception  at 
Boston  we  had  the  pleasure  of  making  a  trip  about  the 
same  as  that  on  which  we  are  to  start  next  week.  But 
I  am  sure  that  after  seven  years  we  will  find  many  new 


THE  INTERNATIONAL  TRADE  CONFERENCE        479 

things  in  your  country,  because  America  is  always  doing 
greater  and  greater  things.  We  in  Europe  marvel  at  the 
height  of  your  buildings  and  the  length  of  your  bridges. 
I  am  sure  that  after  the  lapse  of  seven  years  we  are  to 
see  still  more  wonderful  things  than  we  did  then. 

As  I  remember  it,  at  that  Congress  in  Boston  we  had 
an  attendance  of  about  1,000  members.  Two  years  later 
we  went  to  Paris  and  had  about  2,000  members.  You  see 
the  work  which  had  been  done.  Its  beginnings  were 
rather  modest,  but  we  feel  like  you,  that  the  circum- 
stances of  wars  have  changed  things  and  that  our  modest 
work  in  the  matter  of  international  congresses  of  cham- 
bers of  commerce,  which  met  every  two  years,  was  not 
enough  and  that  there  must  be  special  relations  between 
nations,  especially  to  begin  amongst  the  nations  which 
have  fought  together  and  won  the  victory  together;  and 
we  quite  agree  to  the  proposition  which  was  made  that, 
during  the  intervals  between  the  congresses,  it  was  neces- 
sary to  keep  all  the  nations  in  close  contact.  That  is  the 
reason  of  the  article  of  the  report  read  by  Mr.  Fahey  to 
the  effect  that  during  that  period  there  must  be  found 
some  way  of  taking  a  referendum  in  order  to  act  in  a  con- 
tinuous manner  about  the  great  economic  and  social  ques- 
tions. Those  reasons,  gentlemen,  are  the  reasons  why  a 
new  structure  is  now  necessary  and  we  are  quite  sure 
that  the  warm  reception  you  Americans  have  given  to  the 
idea  will  aid  the  progress  of  our  work  and  create  an  in- 
stitution that  will  make  for  the  future  welfare  of  hu- 
manity. 

Mr.  Fahey:  Gentlemen,,  I  am  sure  that  M.  Schneider, 
of  the  French  Delegation,  will  want  to  say  a  word  on  this 
subject. 

REMARKS  OF  M.  EUGENE  SCHNEIDER. 

Gentlemen,  I  was  quite  unprepared  to  speak  tonight  on 
this  most  interesting  subject,  but  I  must  observe  that 
perhaps  I  am  not  quite  a  stranger  to  this  question,  for 
while  we  were  crossing  the  ocean  M.  Canon-Legrand  was 


480        THE  INTERNATIONAL  TRADE  CONFERENCE 

relating  to  me  some  of  the  things  that  happened  in  the 
Congress  in  Paris.  He  told  me  that  this  Congress  was 
the  occasion  of  the  meeting  of  many  members  of  the  dif- 
ferent countries.  While  I  was  not  present  in  my  own 
country  at  the  time  of  the  conference  in  Paris  yet  my 
people  received  that  Congress  in  my  works  at  Creusot. 
M.  Canon-Legrand  reminded  me  the  other  day  that  some 
of  the  members  of  that  Congress  were  Germans.  I  had 
the  opportunity  of  giving  them  a  bird's  eye  view  of  the 
guns,  the  effectiveness  of  which  they  were  to  learn  a  few 
years  later. 

While  we  have  been  speaking  of  war  weapons  I  think 
this  Congress  is  going  to  be  a  striking,  and  most  inter- 
esting and  most  useful  peace  weapon.  One  of  the  things 
that  impressed  itself  upon  me  most  forcibly  is  this  sen- 
tence in  the  first  page  of  the  report :  'The  purpose  of  the 
organization  is  to  promote  international  commerce,  to 
facilitate  the  commercial  intercourse  of  nations,  to  secure 
harmony  of  action  on  all  international  questions  involv- 
ing commerce  and  industry,  and  to  promote  peace, 
progress  and  cordial  relations  between  the  countries." 
Personally  I  think  and  believe  that  one  of  the  most  lasting 
effects  will  be  the  promotion  of  peaceful  ideas.  We  must 
observe  that  during  the  past  few  generations  most  of  the 
difficulties  between  nations  have  come  from  economic  mis- 
understandings. Therefore  I  affirm  and  believe  that  if 
we  may,  in  a  peaceful  manner  and  in  a  friendly  way,  talk 
over  all  those  matters  before  they  come  to  a  difficult  point 
we  may  do  a  wonderful  work  towards  the  preservation  of 
peace. 

I  think  a  great  change  has  been  made  in  the  ideas  of 
relations  between  countries.  Just  a  few  days  before  I 
left  Paris  I  was  received  by  the  President  of  the  Republic 
and  I  was  received  by  our  Premier,  M.  Clemenceau,  and 
both  of  them  told  me  that  they  understood  and  distinctly 
knew  that  in  the  future  the  business  men  were  going  to 
interfere  in  political  matters,  and  M.  Clemenceau  told  me 
that  we  were  the  modern  type  of  ambassadors. 

Gentlemen,  I  will  not  detain  you  longer,  but  I  want  to 


THE  INTERNATIONAL  TRADE  CONFERENCE        481 

thank  our  American  friends  for  the  splendid  idea  that 
prompted  them  to  include  this  question  among  the 
various  matters  we  wanted  to  discuss.  I  think  that  of  the 
different  questions  we  have  had  to  consider  this  will  cer- 
tainly be  one  of  the  more  lasting  and  most  useful. 

The  Chairman:  It  might  interest  you  to  know  in  re- 
gard to  M.  Schneider's  reference  to  the  visit  of  the  last 
International  Congress  to  his  magnificent  plant  at 
Creusot,  that  there  were  some  ninety  odd  German  dele- 
gates present  at  that  conference;  that  one  of  the  most 
interesting  and  inspiring  things  that  we  saw  during  the 
trip,  which  was  taken  under  the  auspices  and  at  the  in- 
vitation of  the  French  Government  was  the  exhibition  of 
modern  artillery  to  which  he  refers.  Moreover,  the  fact 
that  the  entire  plant  was  thrown  open  for  view  without 
the  slightest  hesitation,  in  great  contrast  to  visits  that 
perhaps  some  of  us  have  had  in  past  years  to  Krupp's 
and  to  similar  plants.  I  well  remember  that  following 
that  day  at  Creusot,  on  the  way  south  on  the  train,  the 
comment  was  freely  made  on  the  part  of  the  men  who 
were  present  that  it  was  a  fine  thing  that  the  work  of  the 
great  Creusot  plant  was  not  confined  to  the  making  of 
artillery  and  ammunition,  but  to  other  and  more  useful 
things,,  and  that  surely  the  day  was  not  far  distant  when 
there  would  be  no  neceessity  for  creating  engines  of  war 
when  the  entire  production  could  be  turned  to  articles  of 
peace.  In  less  than  thirty  days,  gentlemen,  we  were  on 
the  eve  of  war. 

Mr.  Fahey:  We  wish  to  hear  a  word  from  our  col- 
leagues from  Italy  on  this  particular  subject  and  I  am 
confident  that  Commander  Quartieri  would  like  to  say  a 
word  to  us. 

Capt.  Lazzeini:  The  Commander  says  that  with  your 
permission  he  would  like  to  have  Signor  Mylius  speak  in 
his  stead. 


482        THE  INTERNATIONAL  TRADE  CONFERENCE 

REMARKS  OF  COMMANDER  GIORGIO  MYLIUS. 

M.  Mylius:  I  take  pleasure  in  addressing  you,  gentle- 
men, and  I  am  glad  I  am  here  with  this  new  organization 
and  hope  to  be  at  any  future  meeting  of  the  association. 
I  came  to  the  meeting  of  the  Chamber  of  Commerce  in 
Brussels  and  to  that  of  Paris  in  1914.  I  have  already 
been  in  our  international  organization  and  I  can  appre- 
ciate all  the  benefit  which  one  can  receive  from  it.  The 
International  Federation  of  Manchester,  on  whose  board 
of  directors  I  have  sat  eight  or  nine  years,  has  journeyed 
all  the  world  round  to  have  congresses,  from  Manchester 
down  to  Egypt  and  then  in  America  and  all  over  Europe, 
and  intercourse  at  those  Congresses  in  the  form  of  social 
gatherings  brings  great  benefit  with  it,  the  intercourse  of 
business  men  of  the  different  nations  and  the  particular 
people  who  are  living  in  the  nation  in  which  the  Congress 
is  held,  who  gather,  of  course,  more  numerously. 

I  have  heard  with  pleasure  how  the  rules  have  been 
drafted  and  I  think  they  will  be  very  successful,  and  I 
can  only  wish  that  the  organization  should  be  promptly 
organized  and  put  in  order. 

Mr.  Fahey:  The  experience  of  Sir  Arthur  Shirley 
Benn,  chairman  of  the  British  Delegation,,  in  interna- 
tional organizations,  and  his  interest  in  the  subject  is 
such  I  know  that  we  could  not  prevent  him  from  saying 
a  word  on  this  subject.  I  take  great  pleasure  in  calling 
upon  Sir  Arthur  Shirley  Benn. 

Sir  Arthur  Shirley  Benn:  Mr.  Chairman,  you  have 
been  kind  enough  to  say  that  you  cannot  prevent  me  from 
saying  a  word.  I  am  afraid  I  have  said  more  than  a  word 
or  two  already,  but  Bailie  John  King,  who  comes  from 
Scotland,  would  be  glad  to  say  a  few  words  to  you  in  be- 
half of  our  delegation. 

REMARKS  OF  MR.  BAILIE  JOHN  KING. 

Mr.  Chairman  and  Gentlemen:  I  understood  that  I  was 
to  supplement  what  Sir  Arthur  intended  to  say.  How- 
ever, I  am  glad  to  be  present  here  with  reference  to  tho 


THE  INTERNATIONAL  TRADE  CONFERENCE        483 

particular  matter  that  is  now  engaging  our  attentian.  I 
think  of  all  the  subjects  which  have  come  before  us  a. 
this  time  that  none  is  more  important  or  is  charged  with 
greater  possibilities  than  this  arrangement  which  we 
are  seeking  now  to  make  and  the  meetings  which  have 
been  forecasted  in  the  draft  arrangement  which  is  now 
before  us. 

Gentlemen,  we  here  have  all  had  painful  experience. 
It  is  wonderful  that  the  painful  things  of  this  world  often 
produce  the  very  best  results.  Gray  mornings  are  often 
the  precursors  of  brightest  days;  and  weeping  springs 
are  followed  by  sunny  summers  and  autumns  of  richest 
harvests.  And  so,  in  the  business  as  in  the  natural  world, 
they  who  sow  in  tears  shall  reap  in  joy.  We  have  gone 
through  painful  experiences.  The  blood  of  many  related 
to  all  of  us  here  has  dyed  the  ground  in  France  and  Bel- 
gium, and  now  out  of  that  welter  I  trust  will  come,  under 
the  auspices  of  this  great  nation  who  has  been  our  host 
in  these  past  days,  such  a  structure  of  peace  that  will 
bring  prosperity  and  amity  to  the  nations,  and  that  we 
shall  have  cause  to  remember  Atlantic  City  as  being  the 
birthplace  of  one  of  the  greatest  institutions  the  world 
has  ever  seen,  such  an  institution  as  will  bar  these  con- 
flicts which  have  dyed  the  heather  with  blood. 

Mr.  Fahey:  I  am  sure  there  must  be  among  the  mem- 
bership of  some  of  our  own  committees  some  gentlemen 
who  have  an  interest  in  this  subject  and  who  would  like 
to  say  something  on  it  and  the  chair  desires  to  say  that 
the  meeting  is  open  for  discussion  of  all  questions  or  for 
any  remarks  on  the  subject  as  a  whole  which  you  care  to 
make.  I  wonder  if  Mr.  Alba  Johnston  does  not  wish  to 
say  a  word  to  us  on  this  subject? 

Mr.  Johnston:  I  will  give  place  to  our  honored  friend 
Mr.  Farquhar. 

Mr.  Fahey:  Mr.  Farquhar,  Mr.  Johnston  suggests  that 
we  ought  to  have  a  word  from  you. 

Let  me  say,  gentlemen,  that  Mr.  Farquhar  is  an  hon- 
orary vice-president  of  the  Chamber  of  Commerce  of  the 
United  States  and  is  one  of  the  members  of  our  board  of 


484        THE  INTERNATIONAL  TRADE  CONFERENCE 

directors,  a  man  who,  through  his  life,  has  contributed 
to  the  business  progress  and  commercial  prosperity  of 
our  country  and  has  done  his  full  share  in  building  up  the 
organization  machinery  of  the  United  States  Chamber 
of  Commerce.  Mr.  Farquhar,  of  York,  Pennsylvania. 

REMARKS  OF  MR.  A.  B.  FARQUHAR. 

Mr.  Chairman  and  Gentlemen:  It  has  certainly  been  a 
very  great  pleasure  to  meet  you  all  here.  I  was  in 
Europe  just  before  the  war  broke  out  on  a  semi-govern- 
ment mission  through  France,  Belgium,  Germany,  Bo- 
hemia, Austria,,  and  the  Balkans,  and  while  there  in  the 
Balkans  the  war  commenced.  I  did  not  hear  a  single 
person  in  France  or  Belgium,  or  Germany,  or  Austria 
speak  the  word  war,  although  I  passed  from  Austria  into 
the  Balkans  just  about  ten  days  before  it  commenced.  It 
did  not  seem  that  the  masses  of  the  people  had  any  idea 
that  this  great  war  could  come,  and  from  it  I  am  led  to 
believe  that  it  is  the  work  of  the  military  spirit  which  I 
think  is  going  to  be  silenced  forever  by  this  League  of  Na- 
tons.  But  commerce  has  done  more  to  bring  peace  than 
any  other  cause.  It  brings  peace  and  enlightenment. 
Without  commerce  the  world  would  still  be  living  in 
caves,  dressing  skins;  there  would  be  no  intercourse,  no 
improvement,  no  advancement.  It  is  commerce,  inven- 
tion and  manufacture,  that  has  advanced  the  world  and 
made  it  what  it  was.  As  M.  Schneider  said,  Clemenceau 
told  him  that  men  of  commerce,  men  of  business,  will  be 
the  diplomats.  I  think  the  time  has  come  now,  when  we 
should  have  an  able  man  of  business,  at  least  one  with 
intelligent  business  methods  to  take  the  helm  of  state, 
and  direct  the  affairs  of  recuperation.  It  is  very  certain 
this  waste  of  war  can  only  be  compensated  for  and  the 
world  brought  back  to  prosperity  by  increase  of  produc- 
tion, careful  management  and  efficiency.  That  is  so  ab- 
solutely certain,  so  full  of  common  sense,  that  no  one  could 
doubt  it.  We  all  should  be  willing  to  work  longer  hours, 
be  more  economical  and  more  efficient,  until  we  make  up 


THE  INTERNATIONAL  TRADE  CONFERENCE        485 

what  has  been  lost.  Except  for  the  noble  work  of  our 
European  friends,  British,  French,  Belgian  and  Italian,  we 
probably  would  be  in  the  throes  of  a  terrible  war  our- 
selves at  the  present  time.  If  they  had  been  conquered, 
there  is  no  question  but  what  the  war  would  have  come 
over  to  our  borders.  I  feel  that  we  owe  a  very  great 
debt  to  them,  and,  for  my  part,  I  think,  it  should  be  paid. 
I  am  ready  to  do  my  share,  and  to  advocate  the  payment. 
We  are  all  bound  together  now  as  one  nation  throughout 
the  world.  What  benefits  one  portion  of  the  world  bene- 
fits all,  and  our  interests  are  intertwined  with  those  of 
Belgium,  Italy,  France  and  England ;  and  their  prosperity 
will  be  prosperity  for  us.  Therefore,  we  should  not  hesi- 
tate a  moment  to  grant  any  assistance  that  will  be  neces- 
sary to  restore  their  prosperity. 

In  this  country,  we  have  had  great  men.  Our  consti- 
tution, I  think,  as  Gladstone  remarked,  is  the  greatest 
form  of  government  that  ever  emanated  from  the  mind 
of  man,  the  first  really  great  form  of  government  the 
world  has  ever  seen.  There  were  great  men  in  those  days 
and  we  have  had  great  men  since.  It  is  my  good  fortune 
to  have  known  a  good  many  of  them.  Among  my 
first  acquaintances  that  made  a  great  impression  upon 
me  was  our  great  President,  Abraham  Lincoln,  called  the 
typical  American  of  all  times.  He  embodies  all  the  great 
principles  of  the  Americans,  rose  up  from  humble  begin- 
nings. I  was  with  him,  knew  him  before  the  war,  knew 
him  during  the  war,  walked  and  talked  with  him,  was 
with  him  at  Gettysburg,  sitting  in  the  corner  of  the  plat- 
form as  he  delivered  a  classic  which  you  have  all  heard, 
but  which,  like  many  other  good  things,  cannot  be  re- 
peated too  often.  I  am  going  to  repeat  it  now.  It  was  a 
memorial  to  the  great  battle  of  Gettysburg,  the  greatest 
of  the  war,  when  they  came  there  to  honor  the  dead  who 
had  been  buried  there.  He  said: 

"Four  score  and  seven  years  ago,  our  fathers  brought 
forth  on  this  continent  a  new  nation,  conceived  in  liberty, 
and  dedicated  to  the  proposition  that  all  men  are  created 
equal.  Now  we  are  engaged  in  a  great  civil  war,  testing 


486        THE  INTERNATIONAL  TRADE  CONFERENCE 

whether  that  nation  or  any  nation  so  conceived  and  so 
dedicated,  can  long  endure.  We  are  met  on  a  great  bat- 
tlefield of  that  war.  We  have  come  to  dedicate  a  portion 
of  that  field  as  a  final  resting-place  for  those  who  here 
gave  their  lives  that  that  nation  might  live.  It  is  alto- 
gether fitting  and  proper  that  we  should  do  this.  But 
in  a  larger  sense  we  cannot  dedicate,  we  cannot  conse- 
crate, we  cannot  hallow  this  ground.  The  brave  men, 
living  and  dead,  who  struggled  here,  have  consecrated  it 
far  above  our  poor  power  to  add  or  detract.  The  world 
will  little  note,  nor  long  remember,  what  we  say  here,  but 
it  can  never  forget  what  they  did  here.  It  is  for  us,  the 
living,  rather  to  be  dedicated  here  to  the  unfinished  work 
which  those  who  fought  have  thus  far  so  nobly  advanced. 
It  is  rather  for  us  to  be  here  dedicated  to  the  great  task 
remaining  before  us — that  from  these  honored  dead  we 
take  increased  devotion  to  that  cause  for  which  they  gave 
their  last  full  measure  of  devotion — that  we  here  highly 
resolve  these  dead  shall  not  have  died  in  vain — that  this 
naticn,  under  God,  shall  have  a  new  birth  of  freedom  and 
that  Government  of  the  people,  by  the  people,  for  the  peo- 
ple, shall  not  perish  from  the  earth." 

And  from  the  last  inaugural : 

"With  malice  towards  none,  with  charity  for  all,  with 
firmness  in  the  right,  as  God  gives  us  to  see  the  right, 
let  us  strive  on  to  finish  the  work  we  are  in;  to  bind  up 
the  nation's  wounds;  to  care  for  him  who  shall  have 
borne  the  battle  and  for  his  widow,  and  his  orphans;  to 
do  all  which  may  achieve  and  cherish  a  just  and  lasting 
peace  among  ourselves  and  with  all  nations." 

M).  Fahey:  Gentlemen,  one  of  our  American  business 
men,  who  thinks  internationally  and  who,  during  the  late 
war,  made  a  splendid  contribution  so  far  as  our  ability 
to  take  part  in  that  struggle  is  concerned,  is  Mr.  Edward 
N.  Hurley,  of  Chicago,  Chairman  of  our  Shipping  Board 
during  the  trying  period  when  our  ships  were  trying  to 
come  to  your  aid  on  the  other  side  of  the  Atlantic.  Mr. 
Hurley  has  a  national  view,  and  the  true  imagination  of 
an  American  business  man.  I  know  he  will  have  a  word 


THE  INTERNATIONAL  TRADE  CONFERENCE        487 

or  more  of  interest  to  say  to  you  on  this  subject,  and 
I  am  going  to  take  great  pleasure  in  presenting  to  you, 
Mr.  Hurley. 


REMARKS  OF  HON.  EDWARD  N.  HURLEY. 

Mr.  Chairman,  Mr.  Bedford,  and  Gentlemen:  I  appre- 
ciate your  kindness,  Mr.  Chairman,  in  asking  me  to  say 
a  word.  I  first  want  to  congratulate  the  Chamber  of  Com- 
merce of  the  United  States  for  the  progress  they  are 
making  in  cementing  the  ties  between  our  neighbors 
across  the  "pond"  and  the  American  business  men.  I 
had  an  opportunity  to  come  in  contact  with  the  Cham- 
ber of  Commerce  of  the  United  States,  as  a  member  of 
the  Federal  Trade  Commission,  and  later  as  Chairman  of 
the  United  States  Shipping  Board,  and  I  always  had  the 
feeling  that  if  I  wanted  to  get  advice  and  counsel  that 
was  sound  and  sane  in  the  public  interests — and,  gentle- 
men, the  business  interest  is  nothing  but  the  public  in- 
terest— I  could  go  to  the  Chamber  of  Commerce  and  re- 
ceive their  guidance,  counsel  and  advice.  I  have  gone  to 
them  many  times  and  never  found  them  wanting. 

I  have  a  thought  in  connection  with  our  deliberations 
here,  and  am  going  to  address  myself  for  the  moment  to 
the  American  business  men  who  are  conferring  with  our 
friends  from  the  other  side.  They  are  over  here  after  a 
very  trying  period,  and  we  are  all  anxious  to  be  helpful. 
Sympathy  is  all  right;  doing  something  is  all  right;  but 
results  is  what  they  need,  and  what  we  should  try  to  bring 
about.  We  should  strive  to  do  something  that  is  con- 
structive. If  we  are  going  to  continue  on  with  friendly 
lines,  which  wish  is  in  the  mind  of  every  American  and  of 
every  man  here  tonight  from  the  other  side,  we  must 
start  to  do  business  direct  by  placing  orders  with  our 
friends  on  the  other  side  for  the  products  that  they  are 
manufacturing,  and  that  they  can  get.  The  balance  of 
trade  must  be  fair.  Otherwise,  we  are  not  doing  busi- 
ness, and  we  are  not  helping  ourselves.  We  have  a  large 


488        THE  INTERNATIONAL  TRADE  CONFERENCE 

number  of  ships  today  for  service  coming  back  in,  and 
I,  for  one,  am  anxious  to  join  with  the  other  American 
business  men,  to  try  and  purchase  everything  that  we 
possibly  can  from  the  nations  that  are  represented  here 
tonight.  Thousands  of  good  articles  for  sale.  That  is 
the  way  to  balance  trade,  and  to  help  them  financially. 
Loaning  money  is  a  fine  thing,  and  those  nations  that  re- 
quire it  should  have  it;  but  the  placing  of  orders,  laying 
aside  any  selfish  motive  we  may  have  on  being  fearful 
that  they  might  take  some  of  our  business.  Let  us  say 
that  we  are  going  to  do  business  along  business  lines, 
not  for  this  month  alone  or  for  next  month,  but  for  the 
years  to  come;  allow  them  to  find  themselves  and  re- 
construct their  business  demoralized  during  the  war.  In 
this  way  we  will  do  more  to  bring  them  back  to  their  for- 
mer sound  position  than  in  any  other.  I  thank  you, 
gentlemen,  for  your  kindness. 

Mr.  Fahey:  Gentlemen,  we  have  had  the  privilege  of 
having  as  our  aid  in  perfecting  this  report  and  in  some  ad- 
vanced study  of  the  subject,,  Mr.  S.  C.  Mead,  of  New  York, 
the  Executive  of  the  great  New  York  Merchants'  Asso- 
ciation, and  one  of  the  ablest  men  in  that  capacity  in  the 
country.  Mr.  Mead,  representing  that  great  organiza- 
tion, has  given  considerable  thought  and  study  to  this 
particular  subject,  and  I  am  sure  you  will  be  interested  in 
having  an  expression  of  views  from  him.  I  take  pleasure 
in  presenting  to  you,  Mr.  Mead. 


REMARKS  OF  MR.  S.  C.  MEAD. 

Mr.  Chairman  Mr.  Bedford,  and  Gentlemen:  This  is, 
indeed,  a  very  unexpected  pleasure  or  task,  whichever 
way  you  may  look  on  it,  which  has  been  imposed  upon  me. 
I  desire  to  address  myself  for  just  one  moment  to  the  re- 
port which  is  before  the  meeting. 

I  agree  with  one  or  two  of  the  speakers  that  have  pre- 
ceded me  in  the  belief  that  there  is  no  more  important 
single  subject  before  this  gathering  than  that  of,  at  least, 


THE  INTERNATIONAL  TRADE  CONFERENCE        489 

starting  the  work  of  perfecting  some  form  of  efficient, 
effective,  permanent  co-operative  organization  between 
the  nations  represented  here. 

The  subject  matter  covered  by  this  report  pertains  not 
merely  to  the  solution  of  the  great  problems  which  now 
confront  the  nations,  which,  to  a  greater  or  less  extent, 
were  simply  temporary  in  character,  and  will  be  solved 
in  the  course  of  a  few  years,  but  this  looks  forward  far 
into  the  future  and,  in  my  belief,  far  beyond  the  present 
generation.  If  there  can  be  created  out  of  this  gather- 
ing a  cohesive,  strong,  representative  organization  of 
business  and  social  friendship  between  the  business  men 
of  these  nations,  just  think  what  it  will  mean  for  the 
future  generations  as  well  as  for  the  present.  Therefore, 
gentlemen,  irrespective  of  the  immediate  questions  of 
economics,  reconstruction  and  finance  in  which  we  are 
involved  for  the  moment,  irrespective  of  all  these  ele- 
ments, I  feel  myself  that  this  particular  matter  of  per- 
manent organization  is  a  far  more  important  element  in 
the  sense  that  it  will  be  of  great  value  to  the  future ;  that 
it  is  a  more  important  element  than  the  problems  which 
we  are  interrnittQntly  discussing,  and  which  pertain  to  the 
present.  It  is,  therefore,  my  hope,  Mr.  Chairman,  that 
out  of  this  meeting  will  come  some  action  based  upon  the 
outlines  presented  in  this  report,  which  will  insure  the 
consummation  of  some  such  organization  for  the  future. 
Thank  you. 

Mr.  Fahey:  I  see  back  in  the  rear  of  the  room,  Mr.  E. 
A.  S.  Clarke,  President  of  the  Consolidated  Steel  Corpor- 
ation, one  of  the  men  of  the  United  States  engaged  in 
the  great  world-wide  trade,  very  familiar  with  interna- 
tional conditions  and  who,  I  am  sure,  is  interested  in  this 
subject.  I  am  going  to  ask  Mr.  Clarke  if  he  will  not  say 
a  word  to  us. 


REMARKS  OF  MR.  E.  A.  S.  CLARK. 

Mr.  Chairman  and  Gentlemen:    It  is  needless  to  say 
that  I  am  really  very  much  surprised  at  being  called  upon. 


490        THE  INTERNATIONAL  TRADE  CONFERENCE 

I  can  only  say  that  I  am  certainly  in  most  hearty  sym- 
pathy with  the  formation  of  such  an  international  organi- 
zation as  has  been  proposed,  and  I  believe  that  from  it 
must  come  very  great  benefits  to  our  relations  with  our 
goo^  friends  from  over  seas.  It  can  function  in  many 
ways  and  give  us  the  opportunity  for  interchange  of 
ideas,  of  opinions  and  thoughts  and  should  be  of  the  very 
greatest  benefit. 

I  would  like  to  add  one  word  as  to  the  great  pleasure 
I  have  had  in  meeting  with  the  delegates  from  the  foreign 
nations,  in  the  Committee  on  Metals,  of  which  I  have 
been  chairman.  We  have  met  in  the  most  delightful 
spirit  of  friendliness.  The  delegates  have  given  us  a  pic- 
ture of  their  conditions,  which  has  been  of  the  most  in- 
tense interest,  and  which,  at  the  same  time,  has  given, 
I  think,  to  all  of  us  a  basis  of  information  as  to  their 
needs  and  to  our  duties.  That  lays  on  us  the  greatest 
obligation,  as  Mr.  Hurley  says,,  to  perform  here;  and  I 
most  sincerely  hope  that  when  these  gentlemen  shall  re- 
turn to  their  ov:r>  countries  they  will  take  away  with 
them  a  real  and  definite  assurance  of  a  plan  and  action 
for  aid  in  the  restoration  of  their  countries  and  in  the 
solution  of  the  difficulties  which  have  come  upon  them 
during  this  terrible  world-wide  war.  Thank  you. 

Mr.  Fahey:  I  see  another  of  our  business  men,  the 
heau  of  our  largest  American  steamship  company,  the 
International,  Mr.  P.  S.  A.  Franklin,  President  of  that 
great  steamship  company.  I  am  sure  that  he  will  be 
interested  to  say  something  on  that  particular  subject. 
I  take  pleasure  in  presenting,  Mr.  Franklin. 


REMARKS  OF  MR.  P.  A.  S.  FRANKLIN. 

Gentlemen:  It  has  been  a  great  privile.ee  and  very  in- 
structive as  far  as  the  Committee  on  Shipping  is  con- 
cerned, to  hear  the  views  of  the  delegates  from  abroad 
regarding  the  conditions  in  their  countries  and  their  re- 
quirements. It  has  developed  quite  clearly,  that  certain 


THE  INTERNATIONAL  TRADE  CONFERENCE        491 

very  large  channels  of  commerce  and  trade  have  mate- 
rially altered.  Certain  countries  will  require  supplies  in 
very  large  quantities  as,  for  instance,  coal  to  Italy  from 
the  United  States,  whereas,  they  formally  secured  it  from 
England.  The  United  States  has  now  launched  itself  into 
a  very  important  steamship  ownership  and  will,  therefore, 
have  to  take  upon  itself  the  burdens  and  responsibilities 
that  formally  they  have  not  enjoyed.  It  was  a  great 
privilege  to  hear  from  these  gentlemen,  particularly  the 
gentlemen  from  the  nations  that  owned  the  largest 
amount  of  shipping,  that  they  rather  welcomed  the 
United  States  in  the  business  than  otherwise.  The  other 
countries  naturally  want  the  assistance  of  the  ships  to 
deliver  the  goods  that  they  require. 

One  thought  has  presented  itself  to  us  which  really  is 
in  line  with  the  discussion  of  the  evening,  as  I  understand 
it,  and  that  is  an  international  relationship  in  future  busi- 
ness; that  all  present  ship-owning  nations  of  the  world, 
should  combine  their  forces  as  much  as  possible  to  get 
for  the  Allies,  who  have  gone  through  this  war — of 
course,  the  others  have  suffered  more  seriously  than  the 
United  States,  but,  nevertheless,  they  have  been  in  it  re- 
cently— that  we  should  try  to  combine  forces  of  the  Allies 
to  take  over  and  operate  steamers  in  the  trade  that 
iornierly  were  controlled  and  carried  by  Gei  man  steamers 
and,  I  think,  that  if  this  international  body  should  be 
formed,  it  would  be  a  tremendous  step  in  that  direction. 
I  cannot  help  feeling  that  it  would  be  a  very  important 
matter  if  something  of  that  kind  can  be  accomplished. 
I  think  it  would  be  helpful  to  the  commerce  of  our  Allies, 
and  ourselves  in  the  future. 

It  is  a  privilege  to  be  asked  to  address  you.  I  am  very 
much  indebted  to  you  for  this  unexpected  pleasure. 

Mr.  Fahey:  The  President  of  the  Manufacturers'  Ex- 
port Association,  for  the  past  two  years,  is  Mr.  George 
Ed  Smith,  of  New  York,.  President  of  the  Royal  Type- 
writer Company.  He  has  done  much  in  recent  years  to 
develop  the  organization  of  our  American  business  men 
in  their  relations  to  international  commerce.  Mr.  Smith 


492        THE  INTERNATIONAL  TRADE  CONFERENCE 

has  been  giving  us  the  benefit  of  his  consideration  as  a 
member  of  our  committee  on  this  subject,  and  I  am  sure 
that  Mr.  Smith  can  add  something  to  the  discussion  of 
this  particular  matter.  I  will  ask  Mr.  Smith  to  address 
you. 


REMARKS  OF  MR.  GEORGE  ED.  SMITH. 

I  am  as  much  surprised  as  any  of  the  previous  speakers, 
but  very  glad  to  add  one  little  note  possibly  to  what  has 
been  said,  and  that  is  the  desire  on  the  part  of  the 
American  Manufacturers'  to  assist  as  far  as  they  can 
in  the  reconstruction  of  other  countries.  We  realize 
that  this  one-sided  trade  must  change,  and  that  in  order 
to  keep  our  trade  our  customers  must  be  prosperous ;  that 
to  be  prosperous,  they  must  produce ;  that  in  order  to  pro- 
duce they  must  receive  needed  materials  from  this  side. 
One  thing  I  have  noticed  on  the  part  of  the  citizens  of 
this  country  is  a  desire  on  the  part  of  the  Americans  and 
American  business  men  to  see,  if  need  be,  some  of  their 
business  drop  off  in  order  that  the  manufacturers  and 
producers  of  other  countries  may  get  on  their  feet,  and 
that  the  citizens  of  those  countries  may  begin  to  enjoy 
the  life  that  we,  ourselves,  enjoyed. 

Gentlemen,  a  big  step  forward  has  been  taken  in  this 
organization  which  has  been  launched.  I  believe  that  you 
will  see  the  day  when  this  will  be  looked  upon  as  a  mem- 
orable occasion,  to  say  further,  that  the  success  of  this 
movement  must  be  made  a  very  close  part  of  your  own 
affairs.  If  this  were  not  to  succeed,  as  we  hope  it  will, 
it  would  be  a  very  sad  thing  for  business  men  to  have 
attempted  it.  Of  course,  we  must  be  personally  interested 
in  the  nations,  but  we  business  men  are  supposed  to  lead 
and  set  examples;  and  I  sincerely  hope,  that  each  of  us 
may  support  this  movement  to  an  extent  that  those  who 
look  to  America  to  be  a  leader  in  this  matter  may  not  be 
disappointed.  There  are  certain  provisions  made  here  for 
the  support  of  individuals,  and  if  all  of  us  who  are  here 


THE  INTERNATIONAL  TRADE  CONFERENCE        493 

tonight,  and  have  seen  this  movement  launched,  will  give 
our  individual  support,  it  will  go  a  long  way  towards 
launching  this  movement  upon  a  smooth  sea. 

This  International  Congress  of  Business  Men  must  be 
a  success.  If  there  is  to  be  a  political  congress  of  the 
same  nature  and  character,  possibly  we,  as  business  men, 
can  show  in  a  small  way  the  path ;  and  if  we  can,  we  will 
have  done  something  ourselves,  for  those  who  need  our 
help  at  this  time,  and  for  future  generations.  I  think  a 
big  duty  rests  upon  every  man  in  this  room  tonight.  What 
has  been  done  must  be  seen  through,  and,  we  as  business 
men  must  not  leave  this  room  without  taking  with  us 
not  only  th^  credit  for  what  has  been  done,  but  the  re- 
sponsibility of  carrying  it  through  to  a  success. 

Mr.  Fahey:  One  of  our  most  distinguished  American 
business  men,  a  former  ambassador  to  France,  who  has 
shown  great  interest  at  home  in  the  development  of  busi- 
ness men's  organizations,  recently  president  of  the  Cleve- 
land Chamber  of  Commerce,  one  of  the  finest  organiza- 
tions we  have  in  the  country,  honors  us  by  being  present 
tonight.  I  take  very  great  pleasure  in  presenting  to  you 
Hon.  Myron  T.  Herrick,  of  Ohio. 


REMARKS  OF  HON.  MYRON  T.  HERRICK. 

Mr.  Chairman  and  Gentlemen:  It  is  a  great  pleasure 
for  me  to  be  honored  as  a  member  of  the  committee  to 
welcome  my  old  friends  from  La  Belle  France,  also  from 
Belgium  and  Great  Britain  and  Italy. 

I  know  of  no  movement  since  the  war  that  has  elicited 
more  interest  on  my  part  in  these  reconstruction  days 
than  this  meeting  here  at  Atlantic  City. 

The  creation  of  organizations  that  come  naturally,  or 
organizations  that  come  naturally  into  existence  are 
usually  the  most  potent  because  they  come  to  meet  some 
urgent  need.  It  was  not  very  long  ago — we  all  remem- 
ber it — when  there  were  little  organizations  in  some  of 
the  cities  called  Boards  of  Trade,  Chambers  of  Commerce 


494        THE  INTERNATIONAL  TRADE  CONFERENCE 

or  something*  of  that  sort.  They  busied  themselves 
largely  by  marking  the  local  markets  on  the  blackboard ; 
took  no  special  interest  in  civic  affairs.  If  they  took  an 
interest  in  civic  affairs  it  was  only  civic  affairs.  Their 
horizon  was  the  town  or  the  county  and  they  did  not  go 
beyond.  But,  as  the  years  have  gone  on,  these  organiza- 
tions throughout  the  United  States  have  multiplied  and 
increased  until  there  is  hardly  a  village  in  the  United 
States  that  has  not  a  Chamber  of  Commerce.  That 
Chamber  of  Commerce  has  broadened  its  vision.  It  has 
not  only  looked  after  the  trade  of  that  village,  that  county 
seat  or  that  city,  but  it  has  finally  assumed  the  obligation 
of  civic  affairs,  and  the  best  part  of  these  organizations 
has  been  this :  It  has  been  wholly  non-partisan  with  no 
social  stratas,  composed  of  earnest,  patriotic  men  inter- 
ested in  their  own  affairs  in  the  village  or  the  city;  broad- 
ening all  the  time  its  comprehension,  and  assuming  re- 
sponsibility. It  is  a  natural  growth  of  a  natural  process, 
grown  naturally  in  these  years  to  meet  a  supreme  need 
and  that  need  has  now  arrived.  Why,  what  could  we  ac- 
complish in  meeting  these  gentlemen  who  come  over  here 
rightfully  for  encouragement,  for  cooperation,  if  we  had 
not  organization?  That  is  the  basis  of  everything  prac- 
tical. We  found,  without  any  propaganda,  but  by  natural 
growth,  our  great  country  with  a  powerful  organization 
the  evolution  of  which  was  the  United  States  Chamber  of 
Commerce;  and  here  we  are,  a  non-partisan  body  pre- 
pared to  do  something  for  America  when  America  never 
in  the  world  needed  it  as  she  does  at  this  present  moment. 
That  is  the  Chamber  of  Commerce. 

We  are  ready.  We  are  a  comprehending  people  be- 
cause we  represent  the  highest,  the  little,  and  the  lowest 
classes,  if  you  choose  to  divide  the  population  of  a  coun- 
try into  classes.  We  have  been  drawn  very  closely  to- 
gether in  this  great  country  of  ours  and  are  ready  to 
speak  to  these  gentlemen.  We  understand  another  thing, 
my  friends  from  across  the  seas.  We  understand  that 
our  obligation — we  have  grown  a  little  less  selfish  during 
this  war — is  to  vou.  Why?  Because  you  stood  in  the 


THE  INTERNATIONAL  TRADE  CONFERENCE        495 

breach  during  those  fateful  years  whilst  we  dallied  and 
waited,  and  you  gave  your  best  blood;  but  finally  we 
backed  into  the  war  and  thank  God  we  came  out  with  you 
on  top.  It  is  for  those  reasons,  as  one  of  the  last  speak- 
ers has  said  here,  why  we  profited  in  those  years.  It  is 
for  those  reasons  that  we  should  srive  you  the  first  con- 
sideration, because  in  those  years  that  we  were  so 
anxious,  we  were  running  full  time,  making  money  while 
you  stood  up  there  against  a  force  that  threatened  the 
overthrow  of  civilization.  You  stood  there;  lo,  you 
guarded  the  gate  whilst  we  waited ;  that  is  why  we  should 
give  you  first  consideration,  in  my  opinion. 

Mr.  Farquhar,  who  quoted  beautifully  those  words  of 
that  unselfish  statesman ;  that  man  who,  in  a  great  crisis, 
forgot  political  considerations  and  supported  everything 
to  the  one  great  cause  of  the  country  and  humanity. 
Now,  I  want  to  quote  from  another  man  whose  words 
apply  to  this  meeting.  He  was  our  respected  President 
during  a  period  when  there  was  peace  and  good-will  on 
earth  because  of  the  existence  of  that  friendliness  of 
which  you  spoke.  It  was  Wililam  McKinley.  William 
McKinley  thought  as  he  looked  over  this  country  that 
we  had  been  rather  selfish  and  just  about  three-quarters 
of  an  hour  before  he  was  shot,  stricken  down  by  the  as- 
sassin,, he  said :  "The  period  of  our  exclusiveness  has  now 
passed."  It  passed  then;  we  entered  a  concert  of  na- 
tions; and  as  the  world  developed,  and  as  we  have  been 
able  by  a  supreme  effort,  to  save  it  for  civilization,  let  us 
now,  as  we  have  entered  this  new  period  understand  that 
our  obligation  is  to  maintain  this  fraternal  spirit  be- 
cause it  is  self-preservation  and  because  our  greatest  task 
is  now  here.  We  understand  perfectly  that  while  it  is 
unspoken  there  is  in  the  mind  of  every  thinking  citizen 
today  for  the  first  time  a  feeling  that  there  are  people 
whc  would  overthrow  this  government;  people  who  would 
delude  labor;  people  who  would  delude  capital;  people 
who  would  delude  the  unsuspecting  public  for  a  purpose 
that  is  not  disclosed.  When  the  American  people  find, 
when  they  fully  understand,  that  there  is  any  group  of 


496        THE  INTERNATIONAL  TRADE  CONFERENCE 

men — and  that  applies  to  the  honest  laboring  man  as  well 
as  to  any  citizen  in  the  United  States — when  they  under- 
stand that  that  purpose  is  to  overthrow  this  government, 
then  this  government  will  rise  in  its  might  and  down 
with  that  force. 

So,  I  am  pleased,  gentlemen,  to  be  one  to  welcome  you 
here  and  to  enter  enthusiastically  into  the  plan  by  which 
the  comprehending  people  and  the  people  in  this  world, 
who  have  striven  so  hard  to  save  it;  and  by  saving  it 
have  taught  themselves  unselfishness;  have  been  thrown 
back  on  the  splendid  principles  along  which  our  country 
is  organized  and  who  understand — or  I  am  pleased  to  feel 
that  we  shall  be  able  together  to  understand  how  to  lay 
aside  our  selfish  interests ;  better  understand  that  funda- 
mentally we  are  all  right. 

If  you  want  to  know  what  a  nation  is  going  to  do  in  a 
great  stress,  as  I  heard  somebody  say  that  they  feared 
for  Great  Britain,  that  they  feared  for  France,  that  they 
feared  for  America  in  this  crisis,,  just  ask  what  they  have 
done  in  the  past.  They  are  bound  to  do  it  again.  We 
know  what  England  has  done  through  the  centuries;  we 
know  what  Italy  has  done;  we  know  what  Belgium  did, 
and  we  know  what  France  has  done  through  all  the  cen- 
turies; and,  therefore,  we  know  if  banded  together  with 
an  unselfish,  honest  purpose  we  are  going  to  love  each 
other,  we  are  going  to  live  in  peace  and  harmony,  and 
order  will  come  eventually  when  all  this  is  carried  out; 
all  of  which  is  going  to  make  this  world  worth  while,  I 
am  sure. 

Mr.  Fahey:  One  of  our  business  men  who  has  been 
greatly  interested  in  this  subject  for  years,  who  has  been 
a  member  of  the  permanent  committee  of  the  interna- 
tional before  the  war,  and  who  has  acted  as  a  member  of 
this  committee,  reporting  on  a  tentative  plan  of  organi- 
zation, is  Mr.  Edward  A.  Filene,  of  Boston.  I  know  that 
you  will  be  interested  in  hearing  few  words  from  him  on 
this  subject. 


THE  INTERNATIONAL  TRADE  CONFERENCE        497 
REMARKS  OF  MR.  EDWARD  A.  FILENE. 

Mr.  Chairman,  Mr.  Bedford,  and  Gentlemen:  You  will 
not  be  surprised  when  I  say  I  am  surprised  at  being  called 
upon,  but  this  is  rather  unexpected. 

I  rejoice  very  greatly  indeed  that  we  are  so  near  the 
realization  of  the  strengthening  and  development  of  the 
international  organization  which  our  friend  M.  Canon- 
Legrand  so  devotedly  started  in  Milan  so  many  years  ago. 
I  have  the  greatest  hopes  of  success,  and  one  of  the 
reasons  is  that  when  business  men  get  together  they  can 
agree  and  can  accomplish  the  purpose  for  which  they  get 
together.  Business  men  know  that  no  trade  is  a  good 
trade  unless  it  is  mutually  satisfactory,  and  on  that  basis 
we  can  build  up  an  organization  that  will  be  effective  in 
its  work.  Another  reason  why  I  confidently  believe  this 
organization  will  be  of  very  great  use  for  the  world  is 
that  I  believe  that  the  resources  of  the  world,  the  possi- 
bilities of  production  are  not  more  than  half  developed 
as  yet. 

There  are  existing  very  great  obstacles  all  over  tho 
world.  Among  the  important  obstacles  is  the  failure  of 
the  business  men  of  the  different  nations  to  get  together 
as  often  as  they  should.  There  is  a  field  of  possible  in- 
crease of  production  the  international  work  of  business 
men  of  the  world.  That  is  so  promising  that  while  it  be 
difficult  I  believe  it  is  sure  to  be  successful.  I  believe  with 
Mr.  Hurley  that  the  way  to  practically  aid,  cooperate, 
may  I  say,  with  the  European  nations  is  to  buy  their 
goods.  But  I  think  Mr.  Hurley  will  agree  with  me  that 
the  goods  have  got  to  be  preduced  at  normal  prices  be- 
fore we  can  buy  them.  I  am  just  back  from  Europe  and 
while  there  met  our  representatives,  my  own  and  those 
from  seventeen  of  the  big  stores  of  this  country.  We  be- 
lieve that  the  adjustments  will  be  made  and  are  enlarg- 
ing our  European  offices  on  a  scale  incomparably  larger 
than  before  the  war.  But,  gentlemen,  the  work  for  which 
this  Congress  has  come  together  is  primarily  needed.  If 
we  are  to  buy  those  goods  with  exchange  at  50  per  cent 


498        THE  INTERNATIONAL  TRADE  CONFERENCE 

or  100  per  cent  more  than  normal  it  is  exceedingly  diffi- 
cult to  buy  them  and  bring  them  here  and  sell  them  profit- 
ably. Therefore,  I  rejoice  in  the  outlook  that  there  shall 
come  definite  and  substantial  efforts  for  the  reconstruc- 
tion of  business  that  will  make  possible  the  buying  of 
those  goods  profitably  to  the  nations  of  Europe  and 
profitably  to  ourselves. 

Finally,  gentlemen,  this  war  has  somewhat  diminished 
the  number  of  princes,  and  Nature  abhors  a  vacuum ;  and 
so  I  welcome  to  the  possibilities  of  this  organization  to 
coming  to  the  acquaintance  of  the  world  the  new  states- 
men of  the  world,  the  new  princes  of  the  world,  the  mer- 
chant princes  of  the  world,  princes  not  because  of  their 
wealth,  but  because  of  international  public  service. 

Mr.  Fahey:  Mr.  Johnson,  of  Philadelphia,  very  happily 
suggested  when  I  called  on  him  that  I  secure  a  word  from 
Mr.  Farquhar,  but  I  know  that  Mr.  Johnson  has  some- 
thing on  his  mind  on  this  subject  and  on  this  Congress 
and  I  am  going  to  return  to  him  just  the  same  and  ask 
him  for  a  world. 


REMARKS  OF  MR.  ALBA  B.  JOHNSON. 

Gentlemen:  I  thought  I  had  escaped.  I  had  dismissed 
the  subject  of  puzzling  over  what  I  should  say  from  my 
mind  and  now  you  can  readily  understand  that,  after 
hearing  from  all  these  eloquent  speakers  there  is  nothing 
left  for  another  man  to  say. 

Mr.  Herrick  has  referred  somewhat  to  the  development 
of  Chambers  of  Commerce.  I  think  it  was  about  90  years 
ago  that  the  idea  first  started  in  the  United  States.  The 
old  Philadelphia  Board  of  Trade  was  established  at  about 
that  time  and  its  course  was  very  much  as  Mr.  Herrick 
described,  that  is,  it  was  a  Board  of  Trade  and  had  the 
shortcomings  of  the  older  organizations — their  lack  of 
vision,  their  lack  of  ability  to  fulfill  the  expectations  of 
those  who  looked  for  results  from  them  has  caused  a  mul- 
tiplication of  such  organizations  until  the  time  has  come 


THE  INTERNATIONAL  TRADE  CONFERENCE        499 

in  most  of  our  states  when  we  are  embarrassed  by  their 
number  and  are  striving  to  get  back  again  to  the  uni- 
formity of  a  lesser  number  in  a  more  potential  organiza- 
tion. That,  however,,  is  not  the  subject  which  is  of  in- 
terest to  you,  but  the  subject  which  seems  to  be  worthy 
attention  is  the  fact  that  the  trade  organization  fulfills  a 
place  in  modern  civilization  which  is  necessary  and  in- 
dispensable. Time  was  when  the  individual,  rising  head 
and  shoulders  above  his  fellows,  exercised  an  influence  in 
his  community,  in  his  state,  or  in  the  nation,  which  made 
his  voice  listened  to  with  deference;  but,  with  the  multi- 
plication of  such  individuals,  with  the  enlargement  of 
business  interests,  with  the  creation  of  great  numbers  of 
business  organizations  the  individual  voice  is  lost;  it  has 
ceased  to  have  its  potency,  and  it  has  become  necessary  for 
groups  of  individuals  to  unite  in  order  to  make  their  voices 
heard,,  and  in  order  unitedly  to  speak  and  to  avoid  some 
disadvantages  of  individual  advice  and  individual  action. 
Therefore  this  movement  of  business  organization  has 
spread,  as  Mr.  Merrick  has  said,  not  only  throughout  the 
length  and  breadth  of  the  land,  comprising  alike  the 
small  villages,  the  towns  and  the  small  cities,  but  it  has 
also  spread  to  individual  trades,  to  individual  professions 
and  to  every  diversity  of  business  interest ;  and  now  when 
it  is  desirable  for  business  to  have  its  voice  heard, 
whether  in  the  community  or  in  the  nation  organization 
is  indispensable.  Now,  if  this  is  true  on  the  small  scale 
and  the  larger  scales  which  I  have  mentioned,  it  i,3 
especially  true  in  international  matters.  Business  men, 
united  for  a  common  purpose  will  have  not  only  resources 
of  investigation,  but  a  potency  of  utterance  when  their 
well-matured  expressions  are  ready  to  be  announced. 

I  want  to  emphasize  theis  matter  of  research.  It  is 
highly  important  that  some  great  international  organi- 
zation like  this  should  be  studying  the  commercial  prob- 
lems of  the  world,  those  political  questions  which  have  a 
bearing  upon  commerce,  the  questions  of  tariffs,  trade- 
marks and  other  subordinate  questions,  all  of  which,  how- 
ever, are  of  vital  interest  to  the  individual  business  man. 


500        THE  INTERNATIONAL  TRADE  CONFERENCE 

Therefore,  Mr.  Chairman,  it  seems  to  me  that  this  com- 
mittee on  permanent  organization  has  done  wisely  in  pro- 
posing such  a  plan  of  organization  as  that  which  has  been 
put  before  you.  I  have  listened  to  the  report  and  read 
the  report  of  the  sub-committee  with  the  greatest  care. 
I  can  find  no  flaw  in  it  and  I  confidently  believe  that  it 
will  receive  the  unanimous  approbation  of  this  organiza- 
tion and,  therefore,  Mr.  Chairman,  I  move  the  adoption  of 
the  tentative  plan  of  organization  which  has  been  pro- 
posed by  the  subcommittee. 

Mr.  Farquhar:  I  will  second  that  motion. 

(The  motion  was  put  by  the  Chairman  and  unani- 
mously carried.) 


COMMITTEE  ON  RESOLUTIONS. 
REPORT  OF  COMMITTEE. 

MR.  JOSEPH  H.  DEFREES,  Chairman. 
MR.  ELLIOTT  H.  GOODWIN,  Secretary. 

Representatives  of  the  British  Mission. 

SIR  ARTHUR  SHIRLEY  BENN. 
SIR  JAMES  HOPE  SIMPSON. 

Representatives  of  the  French  Mission. 

MONSIEUR  EUGENE  SCHNEIDER. 
MONSIEUR  A.  TIRMAN. 

Representatives  of  the  Belgian  Mission. 

MONSIEUR  FLORIMOND  HANKAR. 
MONSIEUR  CANNON-LEGRAND. 

(Representatives  of  the  Italian  Mission. 

COMMANDER  DR.  FERDINANDO  QUARTIERI. 
GRAND  OFFICER  PROF.  BERNARDO  ATTOLICO. 

Representatives  of  the  United  States. 

LEWIS  E.  PIERSON. 
GEORGE  ED.  SMITH. 
E.  GOODWYN  RHETT. 
JAMES  S.  ALEXANDER. 
JOHN  H.  FAHEY. 


THE  INTERNATIONAL  TRADE  CONFERENCE        501 

THEODORE  F.  WHITMARSH. 
E.  A.  S.  CLARKE. 
WILLIS  H.  BOOTH. 

As  a  result  of  the  organization  of  the  various  commit- 
tees appointed  to  meet  with  committees  representing  the 
Missions  from  abroad  and  the  useful  conferences,  which 
have  been  in  progress  in  advance  of  this  Convention, 
your  Committee  on  Resolutions  found  its  task  compara- 
tively simple. 

As  you  are  aware,  these  Committees  for  the  most 
part  were  organized  to  represent  particular  industries 
and  groups  of  industries  in  the  United  States  whose  di- 
rect aid  and  cooperation  were  desired  in  efforts  to  restore 
the  normal  processes  of  commerce.  The  members  of 
these  Committees  being  representative  of  all  the  factors 
in  their  industries  were,,  therefore,  in  a  position  to  say 
what  could  or  could  not  be  done  in  their  particular  lines 
in  meeting  immediate  needs  of  Europe,  and  likewise 
wherever  it  was  possible  to  secure  prompt  results,  they 
were  in  a  position  to  influence  action. 

Reports  from  the  Conference  Committees  have  been  re- 
ceived and  adopted  by  you.  In  general,  they  have  cov- 
ered three  phases  of  the  questions  before  them. 

First.  Matters  which  the  Committees  could  themselves 
take  up  with  their  industries  and  secure  action  with  little 
delay. 

Second.  Matters  calling  for  legislation  or  in  which  it 
is  necessary  to  obtain  the  cooperation  of  governments, 
and, 

Third.  Questions  calling  for  further  study  before  the 
Committee  is  either  able  to  act  or  make  recommendations. 

Through  the  instrumentality  of  this  International  Con- 
ference, accurate  and  dependable  statements  as  to  com- 
mercial, industrial  and  social  conditions  in  the  various 
countries  represented  here,  have  been  placed  before  the 
public  of  the  United  States  for  the  first  time.  Much  new 
information  has  been  made  available.  The  problems  in- 
volved are  so  many  and  complicated  that  no  business  man 
of  experience  would  expect  the  committees  to  make  com- 
prehensive reports  and  recommendations  as  a  result  of 
the  comparatively  brief  consideration  they  have  been  able 
to  give  to  the  data  presented  to  them. 

It  is,  therefore,  most  gratifying  that  each  of  the  Amer- 
ican Committees  has  been  able  to  present  a  preliminary 
report  carrying  as  many  concrete  suggestions  and  recom- 
mendations for  prompt  action  as  they  were  justified  in 


502        THE  INTERNATIONAL  TRADE  CONFERENCE 

making  under  the  circumstances.  These  reports  have 
been  presented  and  adopted  by  you.  This  action  makes 
special  resolutions  on  most  of  the  subjects  involved  un- 
necessary. 

Each  committee  reports  the  need  of  further  work  and 
investigation  in  order  to  follow  up  the  results  of  the  Con- 
ference and  to  deal  with  questions  which  could  not  be 
disposed  of  immediately.  All  of  the  committees  of  the 
Conference  will,,  therefore,  continue  their  work  in  co- 
operation with  the  permanent  organization  provided  for 
the  International  Trade  Conference  and  the  Chamber  of 
Commerce  of  the  United  States  which  will  do  everything 
possible  to  forward  their  efforts. 

All  of  the  reports  made  by  the  committees  and  the  pro- 
ceedings of  the  Conference  will  be  published  immediately 
and  placed  at  the  disposal  of  the  delegates  to  this  Con- 
ference and  the  business  and  financial  organizations  of 
the  country.  The  same  course  will  be  followed  as  soon  as 
additional  reports  are  received  from  the  committees.  For 
these  reasons  your  Committee  on  Resolutions  finds  it 
necessary  to  present  for  your  consideration  only  a  few 
resolutions  which  are  general  in  character  and  which  may 
be  separately  considered. 

The  resolutions  which  the  committee  desires  to  submit 
are  as  follows : 

The  following  two  resolutions  were  presented  by  the 
Petroleum  Committee,  considered  and  amended  by  the 
Resolutions  Committee  and  as  amended  are  recommended 
for  adoption  by  the  Convention : 

Reciprocal  Recognition  of  Nationals. 

Resolved,  That  it  is  the  sense  of  the  International  Trade 
Conference  that  nationals  of  each  country  should  be  ac- 
corded reciprocal  recognition  in  foreign  countries  iden- 
tical with  that  accorded  in  their  own  country  to  nationals 
of  other  countries. 

Governmental  Control  of  Industries. 

WHEREAS,  during  the  period  of  the  war  the  conduct  of 
commerce  and  industry  throughout  the  world  was  largely 
placed  under  governmental  control — the  freedom  of  trade 
and  the  law  of  supply  and  demand  being  set  aside,  and ; 


THE  INTERNATIONAL  TRADE  CONFERENCE        503 

WHEREAS,  it  was  generally  understood  that  this  situ- 
ation was  purely  temporary  and  would  come  to  an  end 
when  normal  conditions  should  be  re-established; 

Now,  therefore,  be  it 

Resolved,  That  it  is  the  sense  of  the  International 
Trade  Conference  that  all  restrictions  on  natural  eco- 
nomic laws  should  be  lifted  as  soon  as  the  exceptional 
circumstances  growing  out  of  the  war  will  permit. 

The  following  resolution  was  submitted  by  the  Coal 
Committee,  considered  and  amended  by  the  Resolutions 
Committee  and  as  amended  is  recommended  for  adoption 
by  the  Conference : 

Restrictions  on  Coal  Industry. 

WHEREAS,  Our  Conferences  with  the  European  Coal 
Committees  have  developed  the  need  of  extending  and 
continuing  exports  of  coal  to  Europe  from  the  United 
States;  and 

WHEREAS,  Various  restrictions  by  agencies  of  the 
American  and  European  governments  prevent  the  most 
effective  measures  being  taken  to  provide  suitable  coal  of 
sufficient  quantities  under  conditions  mutually  advan- 
tageous; and 

WHEREAS,  The  need  for  several  particular  classes  of 
coal  in  Europe  and  the  production  of  many  different  kinds 
of  coal  in  the  United  States  make  it  necessary  that  the 
purchases,  shipment  and  distribution  of  those  coals 
should  be  handled  throughout  by  practical  and  experi- 
enced business  men  familiar  with  the  details  of  such  busi- 
ness ;  and 

WHEREAS,  Governmental  restrictions  seriously  inter- 
fere with  the  development  of  permanent  and  desirable 
trade  relationships  between  the  American  coal  industry 
and  European  consumers; 

Therefore,  be  it 

Resolved,  That  we  urge  the  abandonment  of  govern- 
mental restrictions  on  the  purchase,  shipment  and  dis- 
tribution of  coal  from  America  as  soon  as  ever  the  cir- 
cumstances of  the  respective  countries  will  permit. 

And  be  it  further 

Resolved,  That  the  Conference  requests  the  directors 
of  the  Chamber  of  Commerce  of  the  United  States  to 
bring  this  resolution  to  the  attention  of  the  appropriate 


504        THE  INTERNATIONAL  TRADE  CONFERENCE 

American  authorities,  and  that  the  members  of  the  for- 
eign missions  be  likewise  requested  to  bring  it  to  the  at- 
tention of  their  prospective  governments. 

The  following  resolution  originated  with  the  Resolu- 
tions Committee  itself  and  in  the  form  here  submitted  it 
is  recommended  for  adoption  by  the  Conference : 

Interchange  of  Commodities  and  Raw  Materials. 

In  being  in  the  common  interest  of  nations  that  there 
should  be  the  widest  possible  development  of  industry  and 
commerce  and  that  prosperity  should  everywhere  prevail, 
the  International  Trade  Conference  deems  it  to  be  of 
prime  importance  that  there  should  be  the  widest  prac- 
ticable interchange  of  commodities  and  in  particular  the 
freest  practicable  distribution  of  raw  materials,  and  that 
at  the  present  moment  consideration  should  be  given  to- 
the  question  of  fair  distribution  of  raw  materials  in  con- 
nection with  any  financial  plans  for  the  revival  or  reha- 
bilitation of  industries  which  have  been  interrupted  or 
prostrated  by  the  war. 

JOSEPH  H.  DEFREES,  Chairman. 


CLOSING  EXERCISES. 

An  Expression  From  the  Foreign  Missions. 

Sir  Arthur  Shirley  Benn:   Mr.  Chairman. 
The  Chairman:  Sir  Arthur  Shirley  Benn. 

Sir  Arthur  Shirley  Benn:  We  beg  to  submit  to  you  a 
resolution  unanimously  passed  by  the  delegations  from 
over  the  seas. 

The  members  of  the  delegations  from  Belgium,  France, 
Great  Britain  and  Italy  desire  at  this  time  to  give  public 
expression  to  their  keen  appreciation  of  the  action  of  the 
Chamber  of  Commerce  of  the  United  States  of  America 
in  extending  the  invitations  which  have  enabled  them  to 
come  to  this  great  country  under  such  inspiring  auspices 
to  visit  so  many  of  its  great  centers  of  industry  and  com- 
merce and  to  come  into  close  personal  contact  with  so> 


THE  INTERNATIONAL  TRADE  CONFERENCE        505 

many  of  its  representative  business  men.  They  are 
deeply  grateful  for  the  splendid  hospitality  which  has 
been  shown  to  them  by  the  Chamber  and  for  the  kind  ar- 
rangements which  have  been  made  for  their  entertain- 
ment and  instruction. 

To  each  and  every  one  of  the  distinguished  gentlemen 
here  present  who,  with  admirable  public  spirit,  have  left 
the  pressing  affairs  and  traveled  so  far  from  all  sections 
of  the  United  States  to  give  the  benefit  of  brotherly 
counsel  and  encouragement  in  the  solution  of  the  vast 
problems  with  which  their  countries  are  faced,  they  de- 
sire to  convey  a  personal  and  heartfelt  message  of  thanks. 
Signed  by  the  Chairman  of  the  Belgium,  French,  British 
and  Italian  delegations,  respectively. 

FLORIMOND  HANKAR. 

EUGENE  SCHNEIDER. 

ARTHUR  SHIRLEY  BENN. 

FERDINANDO  QUARTIERI. 

The  Chairman:  Sir  Arthur  Shirley  Benn,  M.  Eugene 
Schneider,  M.  Florimond  Hankar  and  Commander  Quar- 
tieri,  representing  your  respective  nations,  I  have  to  say 
to  you  that  we  shall  be  glad  indeed  to  enter  this  minute 
upon  the  records,  and  I  will  ask  Mr.  H.  L.  Ferguson,,  the 
President  of  the  Chamber  of  Commerce  of  the  United 
States,  to  make  response  to  your  most  courteous  resolu- 
tion. 

Mr.  Ferguson:  Sir  Arthur  and  gentlemen  of  the  Euro- 
pean nations :  I  do  not  know  anything  more  calculated  to 
relieve  the  fatigue  of  a  trip  to  New  York  and  back  today 
and  a  hard  day's  work  in  New  York  than  to  receive  your 
resolution.  I  want  to  tell  you  that  we  appreciate  it  and 
it  will  be  placed  among  our  proudest  possessions  in 
Washington  in  the  archives  of  the  Chamber.  It  has  been 
a  great  pleasure  to  have  you  gentlemen  come  over  here, 
and  I  assure  you  that  you  have  brought  with  you  a 
message  that  made  worth  while  all  the  work  of  bringing 
together  this  Conference ;  and,  personally,  we  like  you,  we 
feel  that  you  fittingly  represent  your  great  countries  and 
we  hope  that  this  is  but  the  beginning  of  a  business  as- 
sociation between  the  representatives  of  the  great  coun- 
tries of  the  world  which  will  do  so  much  to  cement  the 


506       .THE  INTERNATIONAL  TRADE  CONFERENCE 

peace  and  friendship  of  the  world  and  to  make  possible 
that  prosperity,  harmony  and  good  feeling  so  necessary 
to  the  happiness  of  all.  Thank  you. 


MR.  BEDFORD'S  CLOSING  ADDRESS. 

Ladies  and  Gentlemen:  We  are  drawing  to  the  closing 
moments  of  this  Convention.  It  is  my  privilege,  as  well 
as  my  duty,  at  this  time  to  express  on  behalf  of  the  Board 
of  Directors  of  the  Chamber  of  Commerce,  and  I  am  sure 
I  can  also  speak  for  our  friends  from  overseas,  the  very 
great  appreciation  we  feel  to  those  who  have  carried  on 
and  originated  and  helped  make  this  Congress  a  success, 
the  success  I  am  sure  you  all  feel  it  to  be.  Especially  are 
we  grateful  to  the  Chairman  of  the  Program  Committee, 
Mr.  Fahey,  who  has  labored  incessantly  and  earnestly  to 
bring  about  this  success.  To  the  Chairman  and  mem- 
bers of  the  various  committees  our  most  grateful  thanks 
go  out.  Never  before,  I  believe,,  has  there  been  such  an 
aggregation  of  business  men  and  bankers  as  has  been 
assembled  here  in  the  work  in  this  Convention.  They 
have  labored  most  assiduously  and  steadfastly  and  faith- 
fully and  have  done  a  magnificent  piece  of  work.  Our 
gratitude  to  them  is  most  sincere  and  heartfelt. 

The  staff  of  the  association  and  of  these  committees  we 
also  wish  to  thank.  Sometimes  we  little  think  when  we 
come  to  these  great  functions  .of  the  immense  amount  of 
detail  work  and  the  long  hours  of  labor  that  are  entailed 
upon  the  staff,  but  their  enthusiasm  and  goodwill  and 
faithful  devotion  is  what  makes  these  kind  of  functions 
successful.  It  needs  the  right  kind  of  a  staff,  and  we 
have  got  it.  I  also  want  to  thank  the  gentlemen  of  the 
Press.  We  could  not  do  anything  without  the  Press.  The 
publicity  of  what  has  gone  on  here  is  what  is  going  to 
make  ultimately  successful  the  mission  these  gentlemen 
have  come  here  on  and  the  Press  has  done  splendid  serv- 
ice for  all  and  we  are  extremely  grateful  to  them.  Of 
course  we  would  like  to  have  been  on  the  first  page  every 


THE  INTERNATIONAL  TRADE  CONFERENCE        507 

day,  but  with  all  the  things  that  are  going  on  and  all  eyes 
centered  on  Washington  and  here  and  there,  we  recognize 
sometimes  that  we  are  lucky  to  get  in  at  all  no  matter 
how  big  we  think  we  are.  But  we  do  feel  that  the  mis- 
sion these  gentlemen  have  come  to  us  on  not  only  is  im- 
portant to  them  but  is  of  vast  importance  for  the  well- 
being  and  good  of  our  entire  country ;  and  so  we  are  going 
to  ask  that  the  Press  will  continue  to  show  its  good  will 
and  appreciation  of  the  importance  of  the  work  these 
gentlemen  are  doing  as  they  go  about  the  country. 

I  have  been  handed  a  letter  of  appreciation  from  the 
Press  commenting  the  publicity  staff  which  they  say  has 
been  of  very  great  assistance  to  them.  It  is  signed  by  the 
newspaper  correspondents  who  have  reported  the  Inter- 
national Trade  Conference  and  they  make  a  special  ref- 
erence to  Mr.  Ben  H.  Lambe,  who  has  done  so  much  to 
help  them  in  their  work.  This  communication  is  signed 
by  the  representatives  of  the  New  York  Tribune,  New 
York  Times,  Philadelphia  Inquirer,  Philadelphia  Public 
Record,  Pittsburgh  Times,  Financial  America,  Boston 
American,  Philadelphia  North  American,  the  Associated 
Press,  the  New  York  Herald,  the  Sun,  the  New  York 
World,  and  the  Daily  Current  News  of  New  York. 

One  more  announcement  in  response  to  a  request  for 
information  on  the  proceedings  of  this  meeting.  It  is 
announced  that  the  record  of  the  groups  as  well  as  the 
general  sessions  will  be  reported  fully  in  the  current 
number  of  The  Nation's  Business. 

Now,  gentlemen  of  the  Congress,  the  formal  deliber- 
ations of  our  Conference  at  Atlantic  City  come  to  an  end. 
Our  visitors  from  overseas  will  make,  under  the  auspices 
of  the  Chamber  of  Commerce  of  the  United  States,  a  visit 
to  a  number  of  our  larger  cities  and  we  will  meet  with 
our  friends  again  in  New  York  on  the  eve  of  their  de- 
parture for  Europe.  Thus  the  International  Trade  Con- 
ference cannot  be  said  to  be  at  an  end,  for  the  plan  in 
inviting  our  European  friends  placed  no  less  importance 
upon  bringing  these  business  men  into  intimate  contact 
with  the  commercial  interests  of  our  country  in  their  re- 


508        THE  INTERNATIONAL  TRADE  CONFERENCE 

spective  home  surroundings  than  it  did  in  bringing  about 
the  discussion  here  upon  broad  and  fundamental  topics. 

We  feel  that  it  has  been  a  very  fruitful  week.  It  has 
certainly  been  a  strenuous  one,  and  great  credit  is  due  to 
every  man  in  attendance  for  the  seriousness  with  which 
he  has  devoted  himself  both  to  the  committee  meetings 
and  to  the  open  conferences.  The  large  attendance  of 
representative  American  business  men  which  we  have 
seen  here  may  be  regarded  by  our  friends  from  Europe 
as  an  indication  of  the  intense  interest  American  business 
men  have  now  come  to  experience  in  our  world  trade  re- 
lations. The  registration  of  those  who  attended  this  Con- 
ference totaled  some  three  thousand.  Before  the  war  to 
have  gathered  such  a  group  as  have  come  together  here, 
and  on  such  an  errand,  would  have  been  absolutely  im- 
possible. 

Let  me  say  without  another  moment's  delay  that  this 
large  number  of  business  men  who  have  come  here,  repre- 
senting, as  they  do,  a  cross-section  of  the  whole  commer- 
cial and  financial  life,  have  been  perfectly  delighted  at  the 
privilege  they  have  enjoyed  of  meeting  these  delegates 
from  overseas.  That  delight  has  been  enhanced  in  no 
small  measure,  not  alone  by  the  charm  of  manner  and 
unvarying  courtesy  so  constantly  displayed  by  all  of  our 
visitors,,  but  by  the  far  more  important  fact  that  you  have 
brought  to  us  a  real  insight,  born  of  long  observation  and 
practical  experience,  into  the  vital  affairs  of  their  re- 
spective nations. 

At  the  very  outset  of  these  conferences  it  was  my  privi- 
lege to  ask  of  our  visitors  from  overseas  information 
upon  certain  very  important,  intimate  information,  going 
to  the  very  depths  of  the  problems  of  national  prosperity, 
indeed  of  national  safety  and  perpetuity.  You  have 
answered  our  questions  in  the  spirit  in  which  we  asked 
them.  Your  perfect  frankness  and  sincerity  in  attempt- 
ing to  reveal  to  us  the  real  conditions  as  they  exist  in 
Europe  has  been  both  enlightening  and  satisfying. 

It  has  been  my  opportunity  for  many  years  to  have  had 
intimate  business  relations  with  all  parts  of  Europe.  It 


THE  INTERNATIONAL  TRADE  CONFERENCE        509 

has  been  my  privilege  recently  to  visit  England,  France 
and  Belgium  and  to  see  something  of  the  way  in  which 
these  countries  were  gathering  themselves  together  and 
entering  the  new  world  of  reconstruction. 

And  there  has  never  been,  as  I  stated  in  asking  my 
questions,  the  slightest  doubt  in  my  mind  as  to  the  future 
safety  of  prosperity  of  Europe,  and  yet  it  has  been  re- 
assuring and  enlightening  to  me  to  hear  the  wonderful 
reports  you  bring  us  of  the  new  vision  and  the  new 
spirit  which  animates  your  people.  A  single  statement, 
like  that  given  me  by  one  of  the  distinguished  gentle- 
men of  the  French  Mission,  to  the  effect  that  of  the  forty 
million  population  of  France,  some  eleven  million  are  in- 
dividual land  owners,  is  the  best  possible  answer  to  the 
question  as  to  whether  France  is  menaced  by  Bolshevism. 
No  country,  the  rank  and  file  of  whose  people  have  so 
great  a  stake  in  her  prosperity  and  safety,  can  for  one  mo- 
ment be  in  jeopardy  from  so  insidious  a  thing.  Many  of  us 
had  heard  that  France  had  been  bled  white,  but  the  facts 
which  you  have  brought  us,  and  the  picture  you  have 
given  to  us,  has  made  us  all  feel  as  never  before  that 
nothing  can  interfere  with  the  future  safety  and  prosper- 
ity of  this  great  nation.  She  poured  out  her  blood  and  her 
treasures  with  prodigality  almost  without  precedent  in 
history,  and  now,  with  great  portions  of  her  country  still 
devastated  and  in  ruins,  we  find  her  whole  people  arising 
in  their  might  to  a  realization  of  yet  greater  destiny. 

And  I  am  sure  all  of  us  have  been  impressed  with  what 
we  have  learned  here  of  Italy.  The  Italy  of  music,  and 
art,  and  beauty  we  have  long  known,  but  the  Italy  of  com- 
merce, and  trade,  and  manufacture ;  the  Italy  of  invention 
and  scientific  research;  the  Italy  of  ambition  and  mate- 
rial prosperity,  is  an  Italy  with  which  our  people  have 
been  unfamiliar.  What  you  have  told  us  has  been  a  reve- 
lation, and  we  know  that  it  will  be  a  yet  greater  revela- 
tion as  you  continue  to  tell  it  to  our  people. 

It  has  been  a  delight  to  have  with  us  the  distinguished 
delegation  from  Belgium.  No  information  was  necessary 
to  make  us  feel  more  keenly  appreciative  of  the  sacrifices 


510        THE  INTERNATIONAL  TRADE  CONFERENCE 

Belgium  had  made  during  the  war.  The  bravery  and 
the  undying  perseverance  of  her  people  during  that  crit- 
ical period  will,  throughout  all  ages,  be  one  of  the  most 
brilliant  pages  of  human  history.  We  knew  that  if  this 
war  resulted  in  nothing  else  it  must  at  all  hazards  bring 
about  the  restoration  of  Belgium  to  the  material  losses 
she  has  suffered  during  the  war,  but  you  have  given  us 
an  insight  into  the  spirit  of  enterprise  and  initiative  with 
which  you  are  engaging  in  your  task  of  rebuilding  the 
shattered  industries  of  your  country,  and  it  is  upon  a 
knowledge  of  this  unquenchable  spirit  of  Belgium  that 
will  be  established  still  greater  confidence  and  good  will 
on  the  part  of  the  American  people  which  will,  I  am  sure, 
cement  our  relations,  both  commercial  and  as  people,  for 
all  time  to  come. 

And  as  for  Great  Britain :  What  an  inspiring  part  she 
has  played.  Your  delegates  here  have  but  intensified  the 
feeling  our  people  already  have  of  enthusiastic  admira- 
tion and  profound  respect  for  the  unvarying  steadfast- 
ness, resourcefulness  and  dependability  of  the  great  Brit- 
ish nation.  And  we  still  feel,  that  which  we  never 
doubted,  that  from  the  demoralization  of  war  English 
finances  and  trade,  indeed  even  her  whole  national  life 
will  arise  to  greater  strength  and  prosperity  than  ever 
before. 

You,  our  foreign  guests,,  have  told  us  this  story  at 
Atlantic  City.  It  has  gone  in  part,  by  medium  of  the 
press,  throughout  our  land,  but  we  want  you  to  continue 
to  tell  that  story.  Tell  it  to  all  our  people.  They  will  be 
keen  to  hear  it  and  you  will  be  gratified  as  you  realize 
their  satisfaction  in  obtaining  the  information  you  are 
so  well  able  to  give  them. 

It  would  be  impossible  to  summarize  in  a  few  words 
the  great  work  of  this  conference,  and  yet,  looking  back 
over  the  week,  perhaps  we  can  indicate  in  a  few  words  at 
least  the  titles  of  several  achievements  of  no  small 
moment. 

1.  We  have  laid  here  the  foundations  for  the  establish- 
ment of  a  permanent  international  commercial  organiza- 


THE  INTERNATIONAL  TRADE  CONFERENCE        511 

tion,  a  permanent  medium  through  which  the  business 
men  of  the  countries  gathered  here  may  exchange  infor- 
mation and  advice,  may  communicate  their  views  of  prob- 
lems of  mutual  concern,  and  may  cooperate  in  promoting 
intelligent  and  broadminded  commercial  development  in 
behalf  of  the  prosperity  of  the  whole  world.  This  is  a 
great  achievement,  and  one  of  the  foundations  of  which 
we  shall  hope  to  build  a  great  structure  of  international 
good  will. 

2.  We  have  greatly  clarified  the  problems  of  interna- 
tional credit  and  the  methods  by  which  the  people  of  the 
United  States  may  cooperate  with  those  of  Europe  in 
hastening  the  reconstruction  of  the  world.  It  has  been 
made  clear  that  if  future  credits  on  a  large  scale  are  to 
be  extended  to  Europe  they  must  be,  not  through  govern- 
ment, but  on  private  initiative,  and  yet  all  such  activities 
must  at  all  times  have  the  cordial  cooperation  and  en- 
couragement of  governmental  authorities,,  and  nothing 
should  be  spared  in  the  form  of  legislation  or  such  gov- 
ernmental action  as  may  be  necessary  to  promote  this 
great  end.  To  lend  to  Europe  the  stupendous  sums  which 
have  been  mentioned  would  require  saving  on  the  part  of 
all  our  people.  The  extension  of  such  credits  cannot  be 
by  our  banks  alone.  The  banks  themselves  largely  act  as 
media  through  which  to  mobilize  the  credit  resources  of 
the  merchants,  the  farmers,  the  working  people,  and  the 
citizens  generally,  of  our  country.  Our  people  must  be 
made  to  see  that  through  saving  and  through  thus  mak- 
ing possible  these  large  European  credits,  the  surest  pos- 
sible contribution  will  have  been  made  to  the  prosperity 
and  future  welfare,  not  alone  of  Europe,  but  of  our  own 
country  itself.  Our  people  must  also  realize  that  if  we 
are  to  be  able  to  save  the  wherewithall  with  which  to 
bring  about  the  prompt  restoration  of  the  productivity  of 
Europe,  it  cannot  be  accomplished  by  turmoil  and  strife 
at  home.  I  venture  to  commend  to  my  labor  friends  the 
importance  of  stopping  to  realive  what  they  are  about  in 
the  strikes  now  being  threatened  in  this  country.  Indus- 
trial strife  means  not  alone  no  saving  for  Europe,  but  it 


512        THE  INTERNATIONAL  TRADE  CONFERENCE 

means  disaster  to  ourselves — to  every  one  of  us.  The 
lesson  of  this  is  of  vital  importance  to  every  man  gath- 
ered here,  and  it  is  a  lesson  which  it  is  incumbent  upon 
each  one  of  us  to  bring  home  in  every  way  we  can  to 
those  with  whom  we  are  individually  associated. 

Europe  has  not  come  to  us  as  a  suppliant,  but  has 
come  to  us  offering  America  the  most  brilliant  opportu- 
nity in  history,  and  that  Europe  will  arise  from  the  war 
a  greater  Europe  and  stronger  than  ever  before  no  man 
who  has  heard  what  has  been  said  here  for  a  week  can 
question  for  a  moment.  The  problem  that  faces  America 
is  whether  we  shall  avail  ourselves  of  the  opportunity 
Europe  offers  to  us  to  provide  such  substantial  co-oper- 
ation to  Europe  in  her  reconstruction  that  it  may  be 
brought  about  with  a  speed  and  in  a  spirit  which  will  con- 
tribute not  alone  to  the  welfare  of  Europe  but  of  the 
prosperity  and  happiness  of  the  United  States  for  all  time 
to  come.  I  wish  to  say  to  those  gathered  here  from  the 
business  life  of  America  that  this  is  the  supreme  thought 
that  we  should  carry  with  us  from  Atlantic  City. 

I  am  leaving  this  Convention  with  a  new  faith  in  the 
Allies,  by  whose  side  we  were  privileged  to  fight  in  this 
war.  I  am  going  to  try  and  spread  that  faith  among  my 
fellow  townsmen  when  I  get  back  to  my  own  business.  If 
you  share  that  faith,,  as  I  am  sure  you  do,  I  ask  you  to 
do  the  same  in  your  towns. 

I  myself  am  confident  that  as  the  outcome  of  the  dis- 
cussions here  the  situation  can  be  met.  A  Committee  on 
Credits  and  Finance,  gathered  from  all  parts  of  the 
country  and  comprised  of  men  of  the  highest  financial  and 
business  ability  have  made  a  report,  in  which  they  state 
briefly : 

First.  After  considering  the  great  problem  from  all 
angles  the  committee  states  definitely  its  belief  that  the 
requirements  of  the  nations  represented  at  this  Confer- 
ence can  be  met. 

Second.  No  one  plan  can  cover  all  cases.  The  problem 
of  each  nation  is  different  from  the  rest.  Not  only  finan- 


THE  INTERNATIONAL  TRADE  CONFERENCE        513 

-cial,  but  commercial,  social  and  political  factors  enter 
into  the  problem.    It  is  the  responsibility  of  America. 

Third.  The  first  definite  step  recommended  is  the  for- 
mation of  corporations  for  foreign  credits  under  the 
Edge  Bill. 

Fourth.  It  is  recommended  that  a  permanent  commit- 
tee be  immediately  appointed  by  the  Chamber,  represen- 
tative of  the  entire  nation's  interest  in  meeting  this  emer- 
gency which  can  present  the  case  of  the  entire  American 
investing  public. 

By  following  these  recommendations  a  method  will  be 
found  by  which  credits  will  be  extended  to  the  European 
countries,  by  which  the  people  of  the  United  States  will 
be  given  the  opportunity  to  help  Europe  and  to  help 
themselves  by  extending  credits  to  those  who  are  richly 
deserving  of  credit. 

And  now,  if  I  may  be  permitted  rather  diffidently,  as 
I  bring  these  proceedings  to  a  close,  I  shall  venture  to  ex- 
press something  of  the  same  thoughts  I  have  hereinbefore 
stated  in  English  in  a  few  words  to  some  of  our  guests 
who  may  not  be  so  familiar  with  English  language : 


Messieurs:  Maintenant  que  les  seances  de  la  Confer- 
ence Internationale  du  Commerce  arrivent  a  leur  fin,  je 
veux  remercier  de  movreau  nos  amis  d'Outre-Mer  pour 
leur  presence  ici. 

Vous  voudrez  bien  me  permettre  d'exprimer  la  grande 
satisfaction  que  les  hommes  d'affaires  Americains  reunis 
ici  ont  eprouvee  en  ayant  1'occassion  de  discuter  les 
grands  problemes  du  commerce  international  avec  les 
hommes  eminents  qui  representent  la  pensee  nette,  1'ex- 
perience  mure  et  la  courtoisie  traditionnelle,  et  qui  com- 
posent  les  groupes  singuliers  qui  sont  venus  chez  nous, 
d'Angleterre,  de  France,  d'ltalie  et  de  Belgique. 

Vous  nous  avez,  Messieurs,  fait  voir  1'Europe  Occiden- 
tale  sous  un  nouveau  jour.  Nous  connaissions  1'Europe 


514        THE  INTERNATIONAL  TRADE  CONFERENCE 

d'avant-guerre.  Nous  avions  conscience  de  vos  sacrifices 
et  de  votre  courage,  aussi  bien  sur  le  champ  de  bataille,, 
que  dans  vos  foyers,  pendant  ces  annees  terribles  de  la 
guerre. 

Vous  venez  maintenant  et  vous  nous  nous  faites  voir 
FEurope  de  1'Ouest,  se  relevant  de  la  douleur  et  de  la 
devastation,  non  seulement  prete  a  assumer  sa  grande 
tache  de  Tavenir,  mais  parfaitment  confiante  dans  son 
pouvoir  de  reconstruire  une  nouvelle  Europe,  une  Europe 
plus  grande  que  jamais. 

Vous  nous  avez  fait  partager  votre  confiance. 

Vous  allez  maintenant  passer  en  revue  nos  principales 
villes.  Vous  allez  rencontrer  nos  hommes  d'affaires  en 
plus  grand  nombre  encore.  Nous  desirerions  que  vous  leur 
fassiez  entrevoir  les  ressources  et  surtout  Pesprit  de  vos 
differents  pays  comme  vous  nous  les  avez  fait  entrevoir, 
ici. 

Vous  trouverez  dans  chacune  des  villes  que  vous 
visiterez  un  accueil  chaleureux  et  un  esprit  desireux 
d'entendre  ce  que  vous  avez  a  leur  dire. 

Us  desirent  vivement  connaitre  les  besoins  de  TEurope 
comme  vous  nous  les  avez  exposes  ici,  et  nous  sommes 
certains  que,  lorsque  vos  visites  dans  les  differentes  villes 
seront  terminees,  vous  aurez  donne  a  tout  le  peuple 
Americain  une  nouvelle  conception  des  relations  com- 
merciales  et  internationales. 

Vous  leur  communiquerez  quelque  chose  de  cet  enthou- 
siasme  pour  vos  differents  pays  que  vous  avez  su  nous 
communiquer,  et  vous  aurez  ainsi  pose  les  bases  d'un 
effort  cooperatif ,  entre  notre  propre  peuple  et  ceux  de  vos 
Pays,  comme  jamais  il  n'en  aura  existe. 

Nous  felicitons  vos  divers  pays  d'avoir  ete  si  digne- 
ment  represented  a  cette  Conference,  et  nous  nous 
felicitons  nous-meme  de  POccasion  que  nous  avons  eue 
de  vous  recontrer  et  d'echanger,  nos  idees  franchement 
et  amicalement. 

Esperons  done  que,  comme  resultat  permanent,  de  ces 
grandes  reunions  il  aura  ete  cree  de  nouveaux  liens 
d'amitie  et  d'entente  entre  la  nation  americaine  et  les 


THE  INTERNATIONAL  TRADE  CONFERENCE        515 

peuples  des  pays  que  vous  representez,  et  qu'ainsi  une 
paix  durable  et  une  prosperite  generate  seront  assurees 
au  mcmde  entier. 


THE  TOJLJR. 

That  the  business  men  of  Europe  and  England  might 
have  an  opportunity  to  view  personally  some  of  the  great 
industrial  centers  of  America,  arrangements  were  made, 
in  cooperation  with  the  Chambers  of  Commerce  in  such 
cities,  to  visit  Philadelphia,  Baltimore,,  Pittsburgh,  Cin- 
cinnati, St.  Louis,  Kansas  City,  Chicago,  Detroit,  Cleve- 
land, Akron,  Buffalo, 
Niagara  Falls,  Roches- 
ter and  Boston,  wind- 
ing up  with  a  week  in 
New  York  before  tak- 
ing ship  for  overseas. 
While  social  atten- 
tion was  a  necessary 
part  of  the  program, 
practical  observation 
^^^^  was  the  predominating 

purpose,   and   on   this 

^llj^^^^Pr  trip   the   visitors   had 

^  opportunity    to     visit 

many  of  the  great  in- 
dustrial plants  of 
those  cities  w  h  i  c  h, 
during  the  war,  poured 
forth  the  deluge  of 
food,  metal  and  ma- 
terial which  supplied 
the  Allied  armies  and  completed  the  destruction  of  the 
huge  German  war  machine,  from  all  which  grew  the  ne- 
cessity for  the  International  Trade  Conference  and  the 
closer  knitting  of  the  trade  ties  of  the  world. 

While  social  attention  was  a  necessary  part  of  the  pro- 


I 


D.    A.    SKINNER, 
Assistant  Secretary,   in  Charge  of  Tour. 


516        THE  INTERNATIONAL  TRADE  CONFERENCE 

gram,  practical  observation  was  the  predominating  pur- 
pose, and  on  this  trip  the  visitors  had  opportunity  to 
visit  many  of  the  great  industrial  plants  of  those  cities 
which,  during  the  war,,  poured  forth  the  deluge  of  food, 
metal  and  material  which  supplied  the  Allied  armies  and 
completed  the  destruction  of  the  huge  German  war  ma- 
chine, from  all  which  grew  the  necessity  for  the  Interna- 
tional Trade  Conference  and  the  closer  knitting  of  the 
trade  ties  of  the  world. 

The  visiting  mission  sailed  for  home  on  the  President 
Grant  November  26,  1919. 

The  Committee  on  Tour  and  Transportation  was  com- 
posed of  the  following  members : 

DELOS  W.  COOKE,  Chairman; 

Associate  Director,  Cunard  Steamship  Co.,  New  York. 
JOHN  McE.  BOWMAN, 

Biltmore  and  Associated  Hotels,  Neiv  York  City. 
OLIVER  T.  BOYD, 

General  Passenger  Agent,  Pennsylvania  Railroad, 

Broad  Street  Station,  Philadelphia. 
EDWARD  CHAMBERS, 

Director  of  Traffic,  U.  S.  Railroad  Administration, 

Washington,  D.  C. 
GEORGE  W.  CULLEN, 

Passenger  Traffic  Manager,  Delaware,  Lackawanna  &  Western 

Railroad,  90  West  Street,  New  York. 
GEORGE  D.  DIXON, 

Vice  President,  Pennsylvania  Railroad  Company. 

Broad  Street  Station,  Philadelphia,  Pa. 
C.  C.  HOWARD, 

Assistant  Cashier,  Irving  National  Bank,  New  York. 
ALFRED  H.  SMITH, 

President,  New   York  Central  &   Hudson  River  Railroad  Co., 
Grand  Central  Terminal,  New  York. 


THE  INTERNATIONAL  TRADE  CONFERENCE        517 


GENERAL  COMMITTEE. 

ALFRED  C.  BEDFORD,  Chairman. 
JOHN   H.   FAHEY,  Vice-Chairman. 
ANDREW  H.  PHELPS,  Secretary. 

ADAMS,  SILAS  B.,  P.  O.  Box  187,  Portland,  Maine. 

AFFLECK,  B.  F.,  President,  Universal  Portland  Cement  Co.,  Chi- 
cago, 111. 

AIKEN,  ALFRED  L.,  President,  National  Shawmut  Bank,  Boston, 
Mass. 

ALLEN,  CHARLES  L.,  President,  The  Norton  Company,  Worcester, 
Mass. 

BLACK,  HARRY  A.,  President,  Black  Hardware  Co.,  Galveston, 
Texas. 

BLISS,  C.  N.,  JR.,  Bliss,  Fabyan  &  Co.,  New  York  City. 

BLUMENTHAL,  GEORGE,  Lazard  Freres,  New  York  City. 

BOTSFORD,  SAMUEL  B.,  President,  Chamber  of  Commerce,  Buffalo, 
New  York. 

BRANTINGHAM,  C.  S.,  President,  Emerson-Brantingham  Co.,  Rock- 
ford,  111. 

BROWN,  JAMES,  BROWN  BROS.  &  Co.,  New  York  City. 

BROWN,  ORTON  B.,  Vice-President  and  Treasurer,  Berlin  Mills  Co., 
Berlin,  N.  H. 

BUFFINGTON,  EUGENE  J.,  Illinois  Steel  Co.,  Chicago,  111. 

BUTTERWORTH,  WILLIAM,  President,  Deere  &  Co.,  Moline,  111. 

CANNING,  A.  J.,  President,  Burlington  Chamber  of  Commerce,  Bur- 
lington, Vt. 

CAPWELL,  H.  C.,  President,  Chamber  of  Commerce,  Oakland,  Cal. 

CARLTON,  A.  E.,  President,  Golden  Cycle  Mining  and  Reduction 
Co.,  Colorado  Springs,  Colo. 

CASANAS,  B.  C.,  President,  New  Orleans  Association  of  Commerce, 
New  Orleans,  La. 

CHENEY,  CHARLES,  President,  Silk  Association  of  America,  New 
York  City. 

CHILDS,  WM.  HAMLIN,  President,  The  Barrett  Co.,  New  York  City. 

CHILBERG,  J.  E.,  President,  The  Scandinavian-American  Bank, 
Seattle,  Wash. 

CLARKE,  E.  A.  S.,  President,  Consolidated  Steel  Corporation,  New 
York  City. 

CLAUSE,  W.  L.,  Chairman,  Pittsburgh  Plate  Glass  Co.,  Pittsburgh, 
Pennsylvania. 

CLIFTON,  CHARLES,  President,  National  Automobile  Chamber  of 
Commerce,  Buffalo,  N.  Y. 

CLUETT,  GEORGE  ALFRED,  Cluett,  Peabody  &  Co.,  Troy,  N.  Y 


518        THE  INTERNATIONAL  TRADE  CONFERENCE 

COE,  W.  R.,  Chairman  of  Board,  Johnson  &  Higgins,  New  York 
City. 

COFFIN,  CHARLES  F.,  President,  Chamber  of  Commerce,  Indian- 
apolis, Ind. 

COOKE,  DELOS  W.,  Cunard  Steamship  Line,  New  York  City. 

COONLEY,  HOWARD,  President,  Walworth  Co.,  Boston,  Mass. 

CORBETT,  H.  L.,  President,  Chamber  of  Commerce,  Portland,  Ore. 

CRADDOCK,  JOHN  W.,  President,  Craddock-Terry  Co.,  Lynchburg, 
Virginia. 

CRAWFORD,  GEO.  C.,  President,  Tennessee  Coal  &  Iron  R.  R.  Co., 
Birmingham,  Ala. 

CROOKER,  GEO.  L.,  President  Providence  Chamber  of  Commerce, 
Providence,  R.  I. 

CROSBY,  JOHN,  President,  Washburn-Crosby  Co.,  Minneapolis, 
Minn. 

CROWDER,  A.  C.,  President,  Chamber  of  Commerce,  Birmingham, 
Alabama. 

CROWELL,  H.  P.,  Quaker  Oats  Co.,  Chicago,  111. 

CULLEN,  JAMES  K.,  Niles-Bement-Pond  Co.,  New  York  City. 

CUYLER,  THOS.  DEWITT,  Commercial  Trust  Bldg.,  Philadelphia,  Pa. 

CALWELL,  CHARLES  S.,  President,  Corn  Exchange  Bank,  Philadel- 
phia, Pa. 

CARRY,  EDW.  F.,  President,  Haskell-Barker  Car  Co.,  Chicago,  111. 

DAVIS,  J.  H.,  President,  Chamber  of  Commerce,  Tacoma,  \Vash. 

DEAN,  WM.  J.,  Nichols,  Dean  &  Gregg,  St.  Paul,  Minn. 

DEFREES,  JOSEPH  H.,  Defrees,  Buskingham  &  Eaton,  Chicago,  111. 

DENNISON,  HENRY  F.,  Dennison  Manufacturing  Co.,  Framingham, 
Mass. 

DOBBS,  SAMUEL  C.,  President,  Chamber  of  Commerce,  Atlanta,  Ga. 

DOLLAR,  ROBERT,  President,  Robert  Dollar  Co.,  San  Francisco,  Cal. 

DRYDEN,  FORREST  F.,  President,  Prudential  Insurance  Co.,  New- 
ark, N.  J. 

DURAND,  W.  C.,  President,  General  Motors  Corporation,  New  York 
City. 

DYER,  WILLIAM  ALLEN,  President,  Chamber  of  Commerce,  Syra- 
cuse, N.  Y. 

EASLEY,  JOHN  G.,  President,  Chamber  of  Commerce,  Richmjnd,  Va, 

ECKER,  FREDERICK  H.,  Vice-President,  Metropolitan  Life  Insurance 
Co.,  New  York  City. 

EDSON,  JOHN  JOY,  Chairman,  Washington  Loan  &  Trust  Co., 
Washington,  D.  C. 

ELTON,  JOHN  P.,  President,  American  Brass  Co.,  Waterbury,  Conn. 

ENDICOTT,  HENRY  B.,  Endicott,  Johnson  Corporation,  Boston,  Mass. 

ERSKINE,  A.  R.,  President,  Studebaker  Co.,  South  Bend,  Ind. 

FARQUHAR,  A.  B.,  A.  B.  Farquhar  Co.,  Ltd.,  York,  Pa. 

FARRELL,  JAMES  A.,  President,  United  States  Steel  Corporation, 
New  York  City. 


THE  INTERNATIONAL  TRADE  CONFERENCE        519 

FEISS,  PAUL  F.,  President,  Chamber  of  Commerce,  Cleveland,  Ohio. 

FELT,  DORR  E.,  President,  Felt,  Torrant  Mfg.  Co.,  Chicago,  111. 

FERGUSON,  HOMER  L.,  President,  Newport  News  Shipbuilding  & 
Dry  Dock  Co.,  Newport  News,  Va. 

FILENE,  EDWARD  A.,  Wm.  Filene  Sons'  Co.,  Boston,  Mass. 

FLETCHER,  ANDREW,  President,  American  Locomotive  Co.,  New 
York  City. 

FLETCHER,  D.  W.,  U.  S.  Senator,  Jacksonville,  Fla. 

FRANKLIN,  P.  A.  S.,  President,  International  Mercantile  Marine 
Co.,  New  York  City. 

FREDERICKSON,  G.,  President,  Chamber  of  Commerce,  Oklahoma 
City,  Okla. 

FREEMAN,  CHARLES  D.,  President,  New  Jersey  State  Chamber  of 
Commerce,  Newark,  N.  J. 

FREED,  LESTER  D.,  President,  Commercial  Club,  Salt  Lake  City, 
Utah. 

GADSDEN,  P.  II.,  Vice-President,  United  Gas  Improvement  Co., 
Philadelphia,  Pa. 

GAGE,  D.  S.,  President,  Chamber  of  Commerce,  Houston,  Texas. 

GAILOR,  THOS.  F.,  Bishop  of  Tennessee,  Sewanee,  Tenn. 

GAMBLE,  JOHN  W.,  President,  Chamber  of  Commerce,  Omahn,  Neb. 

GARRETT,  ROBERT,  Robert  Garrett  &  Sons,  Baltimore,  Md. 

GARY,  E.  H.,  Chairman  of  Board,  U.  S.  Steel  Corporation,  New 
York  City. 

GEORGE,  CHARLES  C.,  President,  City  National  Bank  Building, 
Omaha,  Neb. 

GIBBS,  EDWIN  C.,  President,  Chamber  of  Commerce,  Cincinnati, 
Ohio. 

GILLETTE,  L.  S.,  President,  Plymouth  Investment  Co.,  Minneapolis, 
Minn. 

GLASS,  FRANK  P.,  President,  American  Newspaper  Publishing  As- 
sociation, Birmingham,  Ala. 

GRACE,  JOSEPH  P.,  President,  W.  R.  Grace  &  Co.,  New  York  City. 

GREENE,  EDWIN  FARNHAM,  Lockwood,  Greene  &  Co.,  Boston,  Mass. 

HAILE,  JOHN  H.,  President,  Chamber  of  Commerce,  San  Antonio, 
Texas. 

HANDY,  H.  H.  S.,  President,  Semet-Solvay  Co.,  Syracuse,  N.  Y. 

HAYDEN,  CHARLES,  Hayden,  Stone  &  Co.,  New  York  City. 

HEPBURN,  A.  BARTON,  Chairman  of  Advisory  Board,  Chaso  Na- 
tional Bank,  New  York  City. 

HERR,  E.  M.,  President,  Westinghouse  Electric  &  Manufacturing 
Co.,  Pittsburgh,  Pa. 

HERRICK,  MYRON  T.,  Chairman  of  Board,  Union  Carbide  &  Car- 
bon Co.,  Cleveland,  Ohio. 

HILL,  Louis  W.,  Chairman,  Great  Northern  Railroad,  St.  Paul, 
Minn. 


520        THE  INTERNATIONAL  TRADE  CONFERENCE 

HODGES,  WM.  V.,  President,  Civic  and  Commerce  Association,  Den- 
ver, Colo. 

HOLLISTER,  GRANGER  A.,  Vice-President,  Rochester  Railway  and 
Light  Co.,  Rochester,  N.  Y. 

HOWARD,  CLARENCE  H.,  President,  Commonwealth  Steel  Co.,  St. 
Louis,  Mo. 

HULBERT,  E.  D.,  President,  Merchants'  Loan  &  Trust  Co.,  Chi- 
cago, 111. 

HARTMAN,  GEORGE,  President,  Commerce  Club,  Toledo,  Ohio. 

JACKSON,  T.  E.  President,  Chamber  of  Commerce,  Dallas,  Texas. 

HAMES,  LEE  WARREN,  President,  Chamber  of  Commerce,  Dayton, 
Ohio. 

JOHNSON,  ALBA  B.,  President,  Pennsylvania  State  Chamber  of 
Commerce,  Philadelphia,  Pa. 

JOHNSON,  JACKSON,  President,  Chamber  of  Commerce,  St.  Louis, 
Missouri. 

JOHNSTON,  F.  H.,  President,  The  City  Coal  &  Wood  Co.,  New 
Britain,  Conn. 

KAHN,  OTTO  H.,  Kuhn,  Loeb  &  Co.,  New  York  City. 

KAINS,  ARCHIBALD,  President,  American  Foreign  Banking  Cor- 
poration, New  York  City. 

KELLY,  H.  J.,  Sioux  Falls  Chamber  of  Commerce,  Sioux  Falls, 
S.  Dak. 

KELL,  FRANK,  President,  Wichita  Mill  &  Elevator  Co.,  Wichita 
Falls,  Texas. 

KEITH,  CHARLES  S.,  President,  Central  Coal  &  Coke  Co.,  Kansas 
City,  Mo. 

KENT,  JOHN  S.,  President,  National  Boot  &  Shoe  Mfg.  CD.,  Bos- 
ton, Mass. 

KINGSBURY,  F.  J.,  President,  Bridgeport  Brass  Co.,  Bridgeport, 
Conn. 

KINGSLEY,  DARWIN  P.,  President,  New  York  Life  Insurance  Co., 
New  York  City. 

KOSTER,  FREDERICK  J.,  President,  California  Barrel  Co.,  San  Fran- 
cisco, Cal. 

KNIGHT,  CHARLES  S.,  President,  Chamber  of  Commerce,  Reno,  Nev. 

LAMONT,  R.  P.,  President,  American  Steel  Foundries,  Chicago,  111. 

LANGDON,  CAVON  S.,  President,  Civic  &  Commerce  Association, 
Minneapolis,  Minn. 

LANDON,  A.  A.,  Vice-President,  American  Radiator  Co.,  Buffalo, 
New  York. 

LANDON,  HUGH  McK.,  Banker,  Indianapolis,  Ind. 

LAYMAN,  W.  A.,  President,  Wagner  Electric  Co.,  St.  Louis,  Mo, 

LEE,  IVY  L.,  The  Merchants'  Association  of  New  York,  New  York 
City. 

LUFKIN,  E.  C.,  President,  Texas  Company,  New  York  City. 

NAGEL,  CHARLES,  Nagel  &  Kirby,  St.  Louis,  Mo. 


THE  INTERNATIONAL  TRADE  CONFERENCE        521 

McBEAN,  ATHOL,  President,    Chamber    of    Commerce,    San  Fran- 
cisco, Cal. 

MCCOMBER,  JOHN   G.,  President,   Boston   Chamber  of   Commerce, 
Boston,  Mass. 

McCoRMiCK,   HAROLD  F.,  President,   International   Harvester   Co., 
Chicago,  111. 

MCCORMICK,  R.  A.,  McCormick  &  Co.,  Baltimore,  Md. 

MCFADDEN,  GEO.,  Geo.  H.  McFadden  &  Bro.,  Philadelphia,  Pa. 

McKAY,  O.  L.,  President,  Meridian  Board  of  Trade,  Meridian,  Miss. 

McLucAS,  WALTER  S.,  President,  Chamber  of  Commerce,  Kansas 
City,  Mo. 

MACROBERTS,  SAMUEL,  National  City  Bank,  New  York  City. 

MARLING,  ALFRED  E.,  President,  Chamber  of  Commerce,  New  York 
City. 

MADDOX,  ROBERT  F.,  President,  Mellon  National  Bank,  Pittsburgh, 
Pennsylvania. 

MARTIN,    THOMAS   L.,    President,    Chamber   of    Commerce,    Boise, 
Idaho. 

MATHER,  SAMUEL,  Mather  &  Co.,  Cleveland,  Ohio. 

MATTAI,  WILLIAM  H.,  President,  Merchant  and  Manufacturer  As- 
sociation, Baltimore,  Md. 

MELLON,  A.  W.,  President,  Mellon  National  Bank,  Pittsburgh,  Pa. 

MEREDITH,  E.  T.,  Publisher,  "Successful   Farming,"  Des  Moines, 
Iowa. 

MERRICK,   HARRY   H.,    President,   Association   of   Commerce,   Chi- 
cago, 111. 

MEYERS,  H.  P.,  President,  Association  of  Public  and  Business  Af- 
fairs, St.  Paul,  Minn. 

MINER,  EDWARD  G.,  President,  The  Pfaudler  Co.,  Rochester,  N.  Y. 

MOORE,  DR.  JOHN  B.,  267  West  73rd  Street,  New  York  City. 

MORELAND,  WATT  L.,  President,  Chamber  of  Commerce,  Los  An- 
geles, Cal. 

MORGAN,  WM.  FELLOWES,  President,  Merchants'  Association,  New 
York  City. 

MORSE,    CHARLES   A.,    Governor,    Federal    Reserve    Bank,    Boston, 
Mass. 

NEWTON,  A.  E.,  President,  National  Machine  Tool  Builders'  Asso- 
ciation, Worcester,  Mass. 

NICHOLS,  DR.  W.  H.,  President,  General  Chemical  Co.,  New  York 
City. 

OSTEREICH,  W.  C.,  President,  Chamber  of  Commerce,  Albuquerque, 
New  Mexico. 

O'LEARY,  JOHN  W.,  Arthur  J.  O'Leary  &  Son,  Chicago,  111. 

OLIVER,  GEORGE  S.,  President,  Chamber  of  Commerce,  Pittsburgh,. 
Pennsylvania. 

OTIS,  CHARLES  A.,  Cuyahoga  Building,  Cleveland,  Ohio. 

PARKER,  JOHN  M.,  John  M.  Parker  Co.,  New  Orleans,  La. 


522        THE  INTERNATIONAL  TRADE  CONFERENCE 

PARSON,  REGINALD,  President  Chamber  of  Commerce,  Seattle 
Wash. 

PATTERSON,  JOHN  H.,  National  Cash  Register  Co.,  Dayton,  Oh?o. 

PEABODY,  FRANK  S.,  Peabody  Coal  Co.,  Chicago,  111. 

PIERCE,  BRADFORD  D.,  President,  Chamber  of  Commerce,  Bridge- 
port, Conn. 

PIERSON,  LEWIS  E.,  Chairman,  Irving  National  Bank,  New  York 
City. 

PORTER,  A.  J.,  Chairman  of  Board,  Shredded  Wheat  Co.,  Buffalo, 
New  York. 

POST,  JAMES  H.,  B.  H.  Howell,  Son  &  Co.,  New  York  City. 

POWELL,  J.  L.,  President,  Wichita  Wholesale  Grocery  Co.,  Wichita, 
Kan. 

RAWSON,  F.  H.,  President,  Union  Trust  Co.,  Chicago,  111. 

REA,  SAMUEL,  President,  Pennsylvania  R.  R.  Co.,  Philadelphia.  Pa. 

REICER,  C.  W.,  President,  Chamber  of  Commerce,  Cheyenne,  Wyo. 

REYNOLDS,  GEO.  M.,  President,  Continental  &  Commercial  Na- 
tional Bank,  Chicago,  111. 

RHETT,  R.  GOODWYN,  President,  Peoples  National  Bank,  Charles- 
ton, S.  C. 

RILEY,  R.  SANFORD,  President,  Chamber  of  Commerce,  Worcester, 
Mass. 

RUE,  LEVI  L.,  President,  Philadelphia  National  Bank,  Philadel- 
phia, Pa. 

RYAN,  JOHN  D.,  Anaconda  Copper  Mining  Co.,  New  York  City. 

SABIN,  CHARLES  H.,  President,  Guaranty  Trust  Co.,  New  York  City. 

SANDERS,  M.  J.,  Agent,  Leyland  Line,  New  Orleans,  La. 

SAULSBURY,  L.  K.,  President,  Chamber  of  Commerce,  Memphis, 
Tenn. 

SAUNDERS,  W.  L.,  Ingersoll  Rand  Co.,  New  York  City. 

SCHWAB,  CHARLES  M.,  Chairman  of  Board,  Bethlehem  Steel  Cor- 
poration, New  York  City. 

SCOTT,  F.  R.,  President,  Chamber  of  Commerce,  Fargo,  N.  Dak. 

SCOTT,  ISAAC  M.,  President,  Chamber  of  Commerce,  Wheeling, 
W.  Va. 

SEGER,  C.  B.,  President,  United  States  Rubber  Co.,  New  York  City. 

SEIBERLING,  F.  A.,  President,  Goodyear  Tire  &  Rubber  Co.,  Akron, 
Ohio. 

SELZ,  J.  HARRY,  President,  Selz,  Schwab  &  Co.,  Chicago,  111. 

SHARPE,  HENRY  D.,  Browne  &  Sharpe  Mfg.  Co.,  Providence,  R.  I. 

SIMMONS,  WALLACE  D.,  Simmons  Hardware  Co.,  St.  Louis,  Mo. 

SIMPSON,  JAMES,  Vice-President,  Marshall  Field  &  Co.,  Chicago, 
Illinois. 

SMITH,  GEO.  ED.,  President,  Royal  Typewriter  Co.,  New  York  City. 

SMITH,  THOMAS  FLOYD,  President,  Board  of  Trade,  Louisville,  Ky 

STONE,  CHARLES  A.,  President,  American  International  Corpora- 
tion, New  York  City. 

STORROW,  JAMES  J.,  Lee,  Higginson  &   Co.,   Boston,  Mass. 


THE  INTERNATIONAL  TRADE  CONFERENCE        523 

STOTESBURY,  E.  T.,  Drexel-Morgan  Co.,  Philadelphia,  Pa. 
STRATTON,  H.   M.,  President,  Chamber  of  Commerce,  Milwaukee, 

Wisconsin. 

SWASEY,  AMBROSE,  Warner  &  Swasey  Co.,  Cleveland,  Ohio, 
SWIFT,  Louis  F.,  President,  Swift  &  So.,  Chicago,  111. 
TAYLOR,  FREDERICK  W.,  President,  Chamber  of  Commerce,  Tucson, 

Ariz. 
TEMPLETON,   ALLAN   A.,  President,   Board  of   Commerce,   Detroit, 

Mich. 
THOMPSON,  ROY  L.,  President,  Chamber  of  Commerce,  Little  "Rock, 

Ark. 

THORNE,   ROBERT  J.,   President,   Montgomery,   Ward   &   Co.,   Chi- 
cago, 111. 
ULLMAN,  ISAAC  M.,  President,  New  Haven  Chamber  of  Commerce, 

New  Haven,  Conn. 
VICTOR,   HENRY   M.,   President,   Union   National   Bank,   Charlotte, 

North  Carolina. 

VOGEL,  AUGUST  H.,  Pfister  &  Vogel,  Milwaukee,  Wis. 
WADE,  FESTUS  J.,  President,  Mercantile  National  Bank,  St.  Louis, 

Missouri. 
WALTERS,  HENRY,  Chairman  of  Board  Safe  Deposit  &  Trust  Co., 

Baltimore,  Md. 
WARFIELD,  S.  DAVIS,  President,  Continental  Trust  Co.,  Baltimore, 

Maryland. 
WEAVER,  JAMES  B.,  President,  Chamber  of  Commerce,  Des  Mojres, 

Iowa. 

WELBORN,  J.  F.,  President,  Colorado  Fuel  &  Iron  Co.,  Denver,  Cclo. 
WHEELER,  HARRY  A.,  President,  Union  Trust  Co.,  Chicago,  III 
WHITE,  JAMES  G.,  President,  J.  G.  White  &  Company,  Inc.,  New 

York  City. 
WHITMARSH,   THEO.    F.,   Vice-President,    Francis   Leggett   &   Co., 

New  York  City. 

WHITRIDGE,  HORATIO  L.,  Inter-Allied  Trading  Corporation,  Balti- 
more, Md. 

WILSON,  THOS.  E.,  President,  Wilson  &  Co.,  Chicago,  111. 
WILCOX,  WILLIAM  G.,    President,    Wilcox,    Peck    &  Hughes,  New 

York  City. 

WING,  DANIEL  G.,  President,  First  National  Bank,  Boston,  Mass. 
WOODIN  W.  H.,  American  Car  &  Foundry  Company,   New   York 

City. 
WOOLLEY,  CLARENCE,  M.,  President,  American  Radiator  Company, 

Chicago,  111. 

WILLARD,   DANIEL,   President,   Baltimore  &  Ohio   R.   R.   Co.,   Bal- 
timore, Md. 
YOUNG,  OWEN  D.,  Vice-President,  General  Electric  Company,  New 

York  City. 


524        THE  INTERNATIONAL  TRADE  CONFERENCE 


OFFICERS  AND  DIRECTORS  OF  THE  CHAMBER  OF 
COMMERCE  OF  THE  UNITED  STATES. 

President, 

HOMER  L.  FERGUSON,  Newport  News,  Va. 
President,  Newport  News  Shipbuildmg  and  Dry  Dock  Co. 

Honorary  Vice-Presidents, 
JOHN  H.  FAHEY,  Boston,  Mass. 

Publisher  and  Manufacturer. 
CHARLES  NAGEL,  St.  Louis,  Mo., 

Attorney,  Former  Secretary  of  Commerce  and  Labor,  U.  S.  A. 
HARRY  A.  WHEELER,  Chicago,  111. 
Vice-President,  Union  Trust  Co. 

A.  B.  FARQUHAR,  York,  Pa., 

President,  A.  B.  Farquhar  Co.,  Ltd.,  Mfgs.  Farm  Implements. 

R.  GOODWYN  RHETT,  Charleston,  S.  C. 

President,  Peoples  National  Bank. 

Vice-Presidents, 

ALFRED  C.  BEDFORD,  New  York,  N.  Y., 
Chairman  of  the  Board,  Standard  Oil  Company. 

JOSEPH  H.  DEFREES,  Chicago,  111., 

Defrees,  Buckingham  &  Eaton,  Attorneys. 

THOMAS  F.  GAILOR,  Sewanee,  Tenn.,  Bishop  of  Tennessee. 

Treasurer, 

JOHN  JOY  EDSON,  Washington,  D.  C., 
Chairman  of  the  Board,  Washington  Loan  &  Trust  Co. 

Chairman,  Executive  Committee. 
JOSEPH  H.  DEFREES,  Chicago,  111. 

General  Secretary, 
ELLIOT  H.  GOODWIN,  Washington,  D.  C. 

Assistant  Secretiry, 
D.  A.  SKINNER,  Washington,  D.  C. 


DIRECTORS. 

S.  B.  ANDERSON,  Memphis,  Tenn.,  President,  Anderson-Tully  Co. 
MAX  W.  BABB,  Milwaukee,  Wis.,  President,  Allis-Chalmers  Mfg.  Co. 
GEORGE  H.  BARBOUR,  Detroit,  Mich.,  President,  Michigan  Stove  Co 
J.  K.  BRANCH,  Richmond,  Va.,  President,  Merchants  National  Bank. 


THE  INTERNATIONAL  TRADE  CONFERENCE        525 

WILLIAM  BUTTERWORTH,  Moline,  111,  President,  Deere  &  Co. 

A.  E.  CARLTON,  Colorado  Springs,  Colo.,  Mining  and  Farming. 

J.  E.  CHILBERG,  Seattle,  Wash.,  President,  Scandinavian  American 
Bank. 

W.  L.  CLAUSE,  Pittsburgh,  Pa.,  Chairman  of  Board,  Pittsburgh 
Plate  Glass  Co. 

EDWARD  A.  FILENE,  Boston,  Mass.,  President,  Wm.  Filene  Sons*  Co. 

P.  H.  GADSDEN,  Charleston,  S.  C.,  President,  Charleston  Consoli- 
dated Railway  &  Light  Co. 

CHARLES  C.  GEORGE,  Omaha,  Neb.,  President,  George  &  Company. 

L.  S.  GILLETTE,  Minneapolis,  Minn.,  President,  Plymouth  Invest- 
ment Co. 

GRANGER  A.  HOLLISTER,  Rochester,  N.  Y.,  Vice-President  Rochester 
Railway  and  Light  Co. 

CLARENCE  H.  HOWARD,  St.  Louis,  Mo.,  President,  Commonwealth 
Steel  Co. 

FRANK  H.  JOHNSTON,  New  Britain,  Conn.,  President,  City  Cool  & 
Wood  Co. 

FRANK  KELL,  Wichita  Falls,  Texas,  Miller  and  Stockman. 

FREDERICK  J.  KOSTER,  San  Francisco,  Cal.,  President,  California 
Barrel  Co. 

JAMES  R.  MACCOLL,  Pawtucket,  R.  L,  Treasurer,  Lorraine  Mfg.  Co. 

R.  A.  MCCORMICK,  Baltimore,  Md.,  Vice-President,  McCormick 
&  Co. 

CHARLES  A.  OTIS,  Cleveland,  Ohio,  Otis  &  Co. 

LEWIS  E.  PIERSON,  New  York,  N.  Y.,  Chairman  of  Board,  Irving 
National  Bank. 

JOHN  L.  POWELL,  Wichita,  Kan.,  President,  The  Johnston  &  Lari- 
mer Dry  Goods  Co. 

M.  J.  SANDERS,  New  Orleans,  La.,  Manager,  Leyland  Line. 

ERNEST  T.  TRIGG,  Philadelphia,  Pa.,  Vice-President  and  Manager, 
John  Lucas  &  Co. 

HENRY  M.  VICTOR,  Charlotte,  N.  C.,  President,  Union  National 
Bank. 


526        THE  INTERNATIONAL  TRADE  CONFERENCE 


ADMINISTRATIVE  ORGANIZATION,   CHAMBER   OF 
COMMERCE  OF  THE  UNITED  STATES. 

General  Secretary, 
ELLIOT  H.  GOODWIN. 

Assistant  Secretary, 
D.  A.  SKINNE?,. 

Research  Bureau, 

JOHN  M.  REDPATH,  ELMER  J.  DAVIDSON, 

Chief.  Assistant  Chief. 

LACEY  C.  ZAPF,  J.  E.  FITZGERALD, 

Assistant  Chief.  Assistant  Chief. 

W.  M.  MACKIE,  Legislative  Assistant. 

Organization  Service  Bureau, 

COLVIN  B.  BROWN,  F.  S.  FITZPATRICK, 

Chief.  Assistant  Chief. 

Field  Division, 

FRED  N.  SHEPHERD,  JOHN  N.  VAN  DER  VRTES, 

Manager.  Secretary,  Central  District. 
ANDREW  H.  PHELPS,  PAUL  CLAGSTONE, 

Secretary,  Eastern  District.  Secretary,  Western  District. 

Field  Secretaries, 

W.  ESVEY  ALBIG  A.  P.  PERKINS 

W.  G.  G.  BENWAY  WM.  D.  SOUTHWICK 

VERNON  E.  BLAGBROUGH  C.  W.  STOWELL 

ADOLPH  BOLDT  M.  B.  TREZEVANT 

G.  H.  MOSELEY  JOHN  T.  WEBBER. 
H.  0.  PATTON 

The  Nation's  Business, 

MERLE  THORPE,  Editor  and  General  Manager. 

F.  S.  TISDALE,  Managing  Editor. 

BEN  H.  LAMBE,  Associate  Editor. 

JOHN  G.  HANRAHAN,  JR.,  Business  Manager. 

GEORGE  K.  MYERS,  Eastern  Advertising  Manager. 

VICTOR  WHITLOCK,  Western  Advertising  Manager. 


THE  INTERNATIONAL  TRADE  CONFERENCE        527 


Chairmen  of  the  Missions 


Standing— left  to  right: 

(1)  Sir  Arthur  Shirley  Benn,  K.  B.  E.,  M.  P. 

(2)  Comm.  Engineer  Fernando  Quartieri 

(3)  M.  Eugene  Schneider 

(4)  Mr.  Alfred  C.  Bedford 

(5)  M.  Florimond  Hankar. 


528 


THE  INTERNATIONAL  TRADE  CONFERENCE 


Members  of  the  Belgian  Mission 


Standing— left  to  right: 

(1)  Mr.  John  N.  Van  der  Vries 

(2)  M.  Alexandra  de  Groote 

(3)  M.  K.  C.  Adams 

(4)  M.  Charlier. 


Seated— left  to  right: 

(1)  Prof.  Paul  Van  den  Ven 

(2)  M.  Canon-Legrand 

(3)  M.  Florimond  Hankar 

(4)  M.  Albert  Neve 

(5)  M.  Albert  E.  Janssen. 


THE  INTERNATIONAL  TRADE  CONFERENCE        529 


Members  of  the  British  Mission 


Standing— left  to  right: 

(1)  Lieut.  A.  S.  Jarratt 

(2)  Hon.  J.  Joyce  Broderick 

(3)  Sir  James  Hope  Simpson 

(4)  Mr.  Frank  Moore 

(5)  Mr.  George  Berks. 


Seated— left  to  right: 

(1)  Mr.  Marshall  Stevens,  M.  P. 

(2)  Sir  Arthur  Shirley  Benn,  K.  B.  E.,  M.  P. 

(3)  Bailie  John  King 

(4)  Hon.  J.  G.  Jenkins. 


530 


THE  INTERNATIONAL  TRADE  CONFERENCE 


Members  of  the 


Standing— left  to  right: 

(1)  M.  le  Commandant  Varaigne 

(2)  M.  Parmentier 

(3)  M.  Harinkouc 

(4)  M.  Collin 

(5)  M.  Dolleans 


(6)  M.  Maurice  Boyer 

(7)  M.  Mazot. 
Seated— left  to  right: 

(1)  M.  Pellerin  de  la  Touche 

(2)  M.  Waddington 

(3)  M.  Julien  Potin 

(4)  M.  le  Baron  du  Marais. 


THE  INTERNATIONAL  TRADE  CONFERENCE 


531 


French  Mission 


Standing — left  to  right: 

(1)  M.  Pesson-Didion 

(2)  M.  Francois-Poncet 

(3)  M.  Ingouf 

(4)  M.  Loizeau 

(5)  M.  Lehideux. 


Seated— left  to  right: 

(1)  M.  Eugene  Schneider 

(2)  M.  Tirman 

(3)  M.  Roche 

(4)  M.  de  Freminville. 


532        THE  INTERNATIONAL  TRADE  CONFERENCE 


Members  of  the 


•PI 


Standing— left  to  right: 

(1)  Mr.  Antonio  Agresti 

(2)  Dr.  Joseph  Chiesa 

(3)  Comm.  Ersilio  Baroni 

(4)  Marquis  T.  Theodoli 


(5)  Chevalier  Giovanni  Fummi. 
Seated— left  to  right: 

(1)  Comm.  Pietro  Giovanni  Lazzerini 

(2)  Comm.  Pro.  Vittorio  Meneghelli 

(3)  Comm.  Prof.  Bernardo  Attolico. 


THE  INTERNATIONAL  TRADE  CONFERENCE        533 


Italian  Mission 


Standing— left  to  right: 

(1)  Engineer  Mario  Luiggi 

(2)  Mrs.  Antonio  Agresti 

(3)  Mr.  Arturo  Anzani 

(4)  Mr.  Paul  Clagstone 

(5)  Dr.  Ildo  Marchisio 


(6)  Comm.  Augusto  Jaccarino. 
Seated— left  to  right: 

(1)  Comm.  Engineer  Ferdinando  Quartieri 

(2)  Comm.  Domenico  Gidoni 

(3)  Comm.  Engineer  Dr.  Luigi  Luiggi. 


GENERAL  LIBRARY 
UNIVERSITY  OF  CALIFORNIA— BERKELEY 

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Renewed  books  are  subject  to  immediate  recall. 


FEB   7  -  1955 


REC'D  LD 


21-100m-l,  '54  (1887sl6)476 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 


